Employers indicate introducing employers’ NICs on pension contributions would be highly detrimental
Early findings from REBA’s survey show a significant, detrimental impact on workplace pension savings if the government were to remove employer NICs relief on employers’ pension contributions.
REBA and the Association of British Insurers (ABI) have been investigating the likely outcomes of the potential policy change ahead of this autumn’s Budget.
More than 600 employers have so far taken part in the research, which finds that introducing the measure would see many employers reduce contributions, while more than half would be less likely to increase contributions above regulatory minimums in the future.
The survey, which will remain open until 11am on Monday 7 October, is the result of strong rumours that the chancellor will remove the relief to mitigate the government’s fiscal black hole.
However, this could have unforeseen consequences for pensions savings.
The survey aims to gauge what impact this could have and has already attracted a record number of responses.
The evidence-based data will be presented to HM Treasury ahead of the Budget. But we need many more employers to add their voice to get HM Treasury and the chancellor to take note of the wide ranging impact this change will have.
Please share this link with peers responsible for pensions and/or employer NICs at other organisations too to help raise awareness of this issue, which we know will have significant consequences for employers and pension savers in the UK.
