Member

Phoenix Group, one of the largest long-term savings providers in the country, has warned that this salary sacrifice cap will disincentivise pension saving for responsible savers at a time when four in 10 working people are already under-saving. It notes that, for basic rate taxpayers above the £2,000 cap, contributions will become subject to 8% national insurance. For those repaying student loans, there is an additional 9% marginal loss. That is a 17% reduction in the marginal incentive to save and why our amendment highlights savers in this group specifically.