Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what estimate he has made of the cost to the public purse of providing the 20 per cent tax relief to non-taxpayers enrolled in net-pay-arrangement defined contribution pension schemes on the same basis as is provided in relief-at-source schemes; and how many people are not benefiting from that relief.

No estimate has been carried out on the cost of providing tax relief for non-taxpayers enrolled in net-pay schemes. Legislation determines the difference between net-pay and relief-at-source systems, and ultimately, it is for pension schemes to choose which to apply. To help employers choose an appropriate pension scheme, The Pensions Regulator offers guidance, including information on the different methods by which tax incentives are obtained.