Member

The Government published a policy costing note which includes detail on the costing of the measure, including the tax base, static costing and a summary of the behavioural responses expected by employees and employers. As part of the explanation of the tax base, the policy costing note sets out that, in 2024, an estimated £32 billion of pensions contributions used salary sacrifice pension arrangements with a value of contributions predominantly from higher and additional rate taxpayers. As part of the explanation of the expected behavioural responses to the measure, the published costing note sets out the range of behaviours accounted for in the costing, including employers’ response to compensating staff, employees’ pattern of pension contribution, and a range of others, including pass-through, forestalling and other impacts.