National Insurance Contributions (Employer Pensions Contributions) Bill

Steve Darling Excerpts

2nd reading
Wednesday 17th December 2025 Commons Chamber

[Steve Darling (Torbay) (LD)]

What we see here is the tune remaining the same from the Budget, but perhaps the words changing a little. We see short-term gain for the taxman and long-term pain for the taxpayer, and particularly for those who wish to save for their pensions.

The Minister was right to highlight how we need to be driving more people to save for their pensions: in fact, we see about 12 million people falling short. Scottish Widows shared a report in the not-too-distant past showing that up to 40% of people are set not to have a comfortable retirement, and the figures have been going in reverse in the last couple of years. The Association of British Insurers highlighted that 40% of people would be less likely to invest in their pensions if these measures were taken forward, so there is a double whammy on those wishing to save. I ask the Government to reflect on the impacts that these measures will have.

The Federation of Small Businesses suggests that a number of small businesses use this mechanism as a way of enhancing their offer to employees in order to retain them. There is a suggestion that there will be higher national insurance costs for some of its members if and when the allowance is withdrawn.

One has to reflect on what businesses have had to suffer. The Ukraine war has led to higher energy bills, the national insurance hike that kicked in in April has put a cold hand around the heart of our businesses and, of course, business rates are set to go up significantly over the next few years. Our economy is in a parlous state. As Liberal Democrats, we really want to see a jump-start for our economy, and we have clear proposals—I will not go over them again for fear of getting in Madam Deputy Speaker’s bad books—for the way forward. We do not want to see our economy go into reverse gear, so we call on the Government to reflect again on these proposals.