Scrap the £2,000 National Insurance cap on pension salary sacrifice

Background

Scrap the planned £2,000 National Insurance cap on pension salary sacrifice before it takes effect in April 2029. Were the cap to be retained, it should be substantially increased & uprated annually with earnings or inflation, so pension saving is not discouraged or penalised.

Additional details

From April 2029, pension salary-sacrifice contributions above £2,000 will be subject to National Insurance. This will increase the cost of saving, and, we believe, will discourage millions from contributing more and leading to smaller pension pots and lower retirement incomes. With 3.3 million employees affected, we think this cap risks increasing future reliance on the State Pension and taxpayers. Parliament must scrap it and protect retirement security.

Where it’s popular

Constituencies with the most signatures on this petition.