Question to the HM Treasury:

To ask His Majesty's Government what analysis they have undertaken of the extent to which the £2,000 cap on national insurance-free salary sacrifice contributions will exacerbate the existing disparity in pension accrual experienced by mothers.

A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice. The TIIN sets out the impact on employees and employers and is available here: https://www.gov.uk/government/publications/salary-sacrifice-reform-for-pension-contributions-effective-from-6-april-2029/salary-sacrifice-reform-for-pension-contributions

As set out in the TIIN, men are more likely to be using pensions salary sacrifice than women – 59% of pensions salary sacrifice users are men.

The cap protects 65% of women using salary sacrifice for their pensions contributions, compared to 50% of men.