TREASURY UNSURE WHO FACES PENSION TAX HIT – Ministers face criticism over lack of impact data
Chancellor Rachel Reeves has admitted the Treasury does not know how many workers will be affected by her planned tax raid on pensions in Wednesday’s Budget. The move will strip tax breaks from salary-sacrifice workplace pension schemes, potentially costing the average worker around £210 a year.
Reeves is considering limiting National Insurance relief for staff and employers to contributions under £2,000 annually. However, Treasury officials confirmed they do not hold data on how many people use these schemes nationwide.
The revelation came after Lib Dem business spokesman Sarah Olney formally asked the Chancellor what information the department held on affected workers.
Critics say the lack of modelling raises concerns about the transparency and fairness of the policy.
Reeves has defended the changes as necessary for fiscal stability, but pressure is growing for clearer impact assessments before Budget day.
