Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an estimate of the additional lifetime tax paid by people entering the workplace in 2025 due to taxation of salary sacrifice pension contributions.

A Tax Information and Impact Note (TIIN)(opens in a new tab) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. As set out in the TIIN, the average additional NICs liability for affected individuals is estimated to be £84 in 2029/30.

Individuals earning below £30,000 making pension contributions through salary sacrifice are overwhelmingly protected by a £2,000 cap, with few (c. 5%) making salary sacrifice contributions above this threshold.