Workplace Pensions
The question
To ask the Secretary of State for Work and Pensions, what discussions he has had with the Chancellor of the Exchequer on the potential impact of salary sacrifice pension scheme changes on the value of occupational pension funds.
Answered by Torsten Bell
We are taking a pragmatic approach to reforming pension contributions made via salary sacrifice, the costs of which were set to nearly triple to £8bn between 2017 and the end of this decade. The £2,000 cap means that only 5% of workers earning below £30,000 making salary sacrificed contributions will be affected. And the government continues to support pension saving with no changes to pensions tax relief, worth over £70 billion a year.
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