Pensions: Tax Allowances
(asked on 24th October 2025) - View Source
Question to the HM Treasury:
To ask His Majesty's Government what latest estimate they have made of the cost per year of (1) tax relief, and (2) National Insurance relief, on new pension contributions unions.
Estimates of Income Tax relief on pension contributions can be found online in Table 6 of the Private Pension Statistics publication. [1] Estimates of the cost per year of Income Tax and National Insurance contribution relief, broken down by type of pension, can be found in Tables 6.1 and 6.2 of the publication respectively.
Table 6 summary: Estimated cost of pension Income Tax and National Insurance contribution (NIC) relief | |
Estimated cost of pension Income Tax and NICs relief | 2023 to 2024 tax year [provisional] |
Total pension Income Tax relief | 54,200 |
- of which contributed to a defined benefit scheme | 24,100 |
- of which contributed to a defined contribution scheme | 30,000 |
Total pension National Insurance Contributions (NICs) relief | 24,000 |
- of which contributed to a defined benefit scheme | 11,800 |
- of which contributed to a defined contribution scheme | 12,100 |
Total pension Income Tax and NICs relief (gross of tax charges) | 78,200 |
[1] https://www.gov.uk/government/statistics/personal-and-stakeholder-pensions-statistics