Workplace Pensions: Taxation
The question
To ask the Chancellor of the Exchequer, whether she has made an assessment of the potential impact of taxation of salary sacrifice pension contributions on levels of pensions saving.
Answered by Torsten Bell
A Tax Information and Impact Note (TIIN) was published alongside the introduction of the Bill containing the changes to pensions salary sacrifice.
The Office for Budget Responsibility (OBR) set out in their November 2025 Economic and Fiscal Outlook that they do not expect a material impact on savings behaviour as a result of Budget 2025 tax changes.
The government supports all individuals to save into pensions through a generous system of income tax and NICs reliefs worth over £70 billion a year. Employers must also meet their automatic enrolment obligations.
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