Asked by: Lord Rogan (Ulster Unionist Party - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact on the economy in Northern Ireland of increasing air passenger duty.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The government is committed to securing the long-term future of the aviation sector in the UK and recognises the benefits of the connectivity it creates between the UK and the rest of the world.
Following previous increases to Air Passenger Duty (APD) rates to account for below inflation rates, the government will uprate APD rates in line with RPI from 1 April 2027 and rounded to the nearest penny. This constitutes a real terms freeze.
In 2012, the UK government devolved the power to set direct long-haul APD rates to the Northern Ireland Executive, and the Executive subsequently set these at zero. The UK government continues to set APD rates for short-haul international and domestic flights from Northern Ireland.
Reforms to APD took effect in April 2023, including the introduction of a new band for domestic flights, initially set at half the rate for short-haul international flights. The domestic rate applies to all flights between airports in England, Scotland, Wales, and Northern Ireland and is currently set at £7 for economy passengers until 31 March 2026.
Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ensure that environmental, social and governance (ESG) ratings, including those produced as part of another financial service or activity, will be regulated consistently by the FCA, to ensure that investors receive transparent and high-quality ESG ratings.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government has introduced regulations to bring the provision of Environment, Social and Governance (ESG) ratings into the FCA’s regulatory responsibility. This will strengthen market integrity and boost investor confidence.
Recognising that ESG ratings are provided by a range of different persons, the scope of the regulated activity is designed to be proportionate to the risk of harm, and to avoid dual regulation. In line with this approach, where firms are providing ESG ratings solely as part of another activity for which they are already regulated, they are excluded from the ESG ratings regulations.
The FCA is consulting on draft rules for ESG ratings providers. As part of this process, the FCA will carefully assess whether existing frameworks for regulated products and services adequately address risks of harm where ESG ratings are provided as part of those activities. If the FCA identifies significant gaps, they will consult on changes to enhance those regimes. This approach is designed to minimise burdens on firms whilst consistently addressing risks of harm from all providers, regardless of their business model or regulatory status.
Asked by: Lord Bassam of Brighton (Labour - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ensure that environmental, social and governance (ESG) ratings are regulated consistently, regardless of the business model or regulatory status of the provider.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government has introduced regulations to bring the provision of Environment, Social and Governance (ESG) ratings into the FCA’s regulatory responsibility. This will strengthen market integrity and boost investor confidence.
Recognising that ESG ratings are provided by a range of different persons, the scope of the regulated activity is designed to be proportionate to the risk of harm, and to avoid dual regulation. In line with this approach, where firms are providing ESG ratings solely as part of another activity for which they are already regulated, they are excluded from the ESG ratings regulations.
The FCA is consulting on draft rules for ESG ratings providers. As part of this process, the FCA will carefully assess whether existing frameworks for regulated products and services adequately address risks of harm where ESG ratings are provided as part of those activities. If the FCA identifies significant gaps, they will consult on changes to enhance those regimes. This approach is designed to minimise burdens on firms whilst consistently addressing risks of harm from all providers, regardless of their business model or regulatory status.
Asked by: Lord Taylor of Warwick (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact of expanding the Treasury bill market on refinancing risk exposure.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Treasury bills represent a core component of the government’s stock of marketable debt, alongside gilts.
The government will be launching a consultation in January 2026 on the potential expansion and deepening of the UK Treasury bill market, including how this might be facilitated by HM Treasury and the UK Debt Management Office.
As well as reflecting feedback from the public, including market participants, and the most recent market and demand conditions, any changes following the consultation will reflect an assessment of cost and risk in accordance with the government’s debt management and cash management objectives. This includes implications for the government’s refinancing risk exposure.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the OBR’s assumption that, following the decision to apply National Insurance to salary-sacrificed pension contributions above £2,000, employers will pass 76 per cent of the additional cost to employees.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. The TIIN is available here: https://www.gov.uk/government/publications/salary-sacrifice-reform-for-pension-contributions-effective-from-6-april-2029
As set out in the TIIN, of the estimated 7.7 million employees who currently use salary sacrifice to make pension contributions, 3.3 million sacrifice more than £2,000 of salary or bonuses. This means 44% would be impacted by this measure, while 56% - around 4.3 million people - are fully protected by the £2,000 threshold. Of those with salary sacrifice contributions in excess of the cap, the average additional employee NICs liability is estimated to be £84 for the tax year 2029/30.
The Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO) set out the estimated yield for this measure. Their assumption on passthrough is in line with assumptions for previous changes to employer NICs and is also reflected in the Government’s published costing note.
This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are prohibited from using salary sacrifice for pensions under the rules of "Managing Public Money."
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.
This is the fairest way to support pensions saving whilst ensuring relief is targeted at those who need it most.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact on public and private-sector pension disparities of the policy to apply National Insurance to salary-sacrificed pension contributions above £2,000.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. The TIIN is available here: https://www.gov.uk/government/publications/salary-sacrifice-reform-for-pension-contributions-effective-from-6-april-2029
As set out in the TIIN, of the estimated 7.7 million employees who currently use salary sacrifice to make pension contributions, 3.3 million sacrifice more than £2,000 of salary or bonuses. This means 44% would be impacted by this measure, while 56% - around 4.3 million people - are fully protected by the £2,000 threshold. Of those with salary sacrifice contributions in excess of the cap, the average additional employee NICs liability is estimated to be £84 for the tax year 2029/30.
The Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO) set out the estimated yield for this measure. Their assumption on passthrough is in line with assumptions for previous changes to employer NICs and is also reflected in the Government’s published costing note.
This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are prohibited from using salary sacrifice for pensions under the rules of "Managing Public Money."
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.
This is the fairest way to support pensions saving whilst ensuring relief is targeted at those who need it most.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact on long-term pension adequacy of removing the NICs exemption on salary-sacrificed pension contributions above £2,000.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. The TIIN is available here: https://www.gov.uk/government/publications/salary-sacrifice-reform-for-pension-contributions-effective-from-6-april-2029
As set out in the TIIN, of the estimated 7.7 million employees who currently use salary sacrifice to make pension contributions, 3.3 million sacrifice more than £2,000 of salary or bonuses. This means 44% would be impacted by this measure, while 56% - around 4.3 million people - are fully protected by the £2,000 threshold. Of those with salary sacrifice contributions in excess of the cap, the average additional employee NICs liability is estimated to be £84 for the tax year 2029/30.
The Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO) set out the estimated yield for this measure. Their assumption on passthrough is in line with assumptions for previous changes to employer NICs and is also reflected in the Government’s published costing note.
This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are prohibited from using salary sacrifice for pensions under the rules of "Managing Public Money."
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.
This is the fairest way to support pensions saving whilst ensuring relief is targeted at those who need it most.
Asked by: Baroness Stedman-Scott (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the impact on working people, particularly those earning below the higher-rate threshold, of removing the National Insurance exemption on salary-sacrificed pension contributions above £2,000; and what modelling they have conducted on the distributional impacts across income deciles.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. The TIIN is available here: https://www.gov.uk/government/publications/salary-sacrifice-reform-for-pension-contributions-effective-from-6-april-2029
As set out in the TIIN, of the estimated 7.7 million employees who currently use salary sacrifice to make pension contributions, 3.3 million sacrifice more than £2,000 of salary or bonuses. This means 44% would be impacted by this measure, while 56% - around 4.3 million people - are fully protected by the £2,000 threshold. Of those with salary sacrifice contributions in excess of the cap, the average additional employee NICs liability is estimated to be £84 for the tax year 2029/30.
The Office for Budget Responsibility’s (OBR) Economic and Fiscal Outlook (EFO) set out the estimated yield for this measure. Their assumption on passthrough is in line with assumptions for previous changes to employer NICs and is also reflected in the Government’s published costing note.
This change applies to all employers who use salary sacrifice for pensions, regardless of whether they are public sector or private sector. Many public sector employers are prohibited from using salary sacrifice for pensions under the rules of "Managing Public Money."
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.
This is the fairest way to support pensions saving whilst ensuring relief is targeted at those who need it most.
Asked by: Helen Whately (Conservative - Faversham and Mid Kent)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice policy announced in the Autumn Budget 2025 on hours worked by people near tax cliff edges.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.
Asked by: Helen Whately (Conservative - Faversham and Mid Kent)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what assessment she has made of the potential impact of the salary sacrifice policy announced in the Autumn Budget 2025 on overall hours withdrawn by employees.
Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
The Office for Budget Responsibility’s (OBR) November 2025 Economic and Fiscal Outlook (EFO) sets out that there is not expected to be a material impact on labour supply from this measure. The OBR also do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year.