Former pensions minister Baroness Altmann (Image: Express)
Some recent Budget rumours have been truly jaw-dropping. None more so than the latest suggestion about pensions.
Hurriedly removing National Insurance relief on employer contributions is bad enough, as it could up-end auto enrolment scheme administration, but exempting public sector employers is absolutely astonishing.
DON'T MISS
Powered by
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
31 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Martin Lewis warns ‘vast majority' of pensioners will not get ￡475 Triple Lock boost
5 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
368 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
15 Comments
Public sector pay rises trigger massive borrowing surge
75 Comments
Staggering ‘￡32 billion' left unclaimed in DWP benefits, Martin Lewis' MSE warns
1 Comments
State pensioner battles for almost a year to get ￡17,700 in underpayments
2 Comments
Millions of workers could be missing out on more than ￡10,000 each
Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
483 Comments
Drivers face ￡43 tax rise as Rachel Reeves plans massive Budget raid
5 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
Martin Lewis warns pensioners will earn ￡112 less than Labour want them to believe
2 Comments
Charities hit out over Labour plans to slash sickness benefits by ￡1.3 billion a year
8 Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
8 Comments
Martin Lewis' ‘six-month warning' for Brits which could be worth thousands
Comments
Rachel Reeves achieves what no other Chancellor has - but she won't want to hear it
202 Comments
Labour MPs fret that Rachel Reeves's tax hikes will lead to humiliating election defeat
136 Comments
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
'I'm a financial advisor - these are the 5 taxes Rachel Reeves will target in the Budget'
71 Comments
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
31 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Martin Lewis warns ‘vast majority' of pensioners will not get ￡475 Triple Lock boost
5 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
368 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
15 Comments
Public sector pay rises trigger massive borrowing surge
75 Comments
Staggering ‘￡32 billion' left unclaimed in DWP benefits, Martin Lewis' MSE warns
1 Comments
State pensioner battles for almost a year to get ￡17,700 in underpayments
2 Comments
Millions of workers could be missing out on more than ￡10,000 each
Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
483 Comments
Drivers face ￡43 tax rise as Rachel Reeves plans massive Budget raid
5 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
Martin Lewis warns pensioners will earn ￡112 less than Labour want them to believe
2 Comments
Charities hit out over Labour plans to slash sickness benefits by ￡1.3 billion a year
8 Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
8 Comments
Martin Lewis' ‘six-month warning' for Brits which could be worth thousands
Comments
Rachel Reeves achieves what no other Chancellor has - but she won't want to hear it
202 Comments
Labour MPs fret that Rachel Reeves's tax hikes will lead to humiliating election defeat
136 Comments
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
'I'm a financial advisor - these are the 5 taxes Rachel Reeves will target in the Budget'
71 Comments
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
31 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Martin Lewis warns ‘vast majority' of pensioners will not get ￡475 Triple Lock boost
5 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
368 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
15 Comments
Public sector pay rises trigger massive borrowing surge
75 Comments
Staggering ‘￡32 billion' left unclaimed in DWP benefits, Martin Lewis' MSE warns
1 Comments
Forcing these extra costs only onto private sector employer contributions would worsen our existing two-tier pension system.
Public sector employees already enjoy much better pensions than private sector employers can afford.
This suggested change would widen the disparity, damaging private sector workers pensions, while forcing them and their employers, who will suddenly see their pension costs soaring, to pay for even more advantaged public sector pensions.
Don't miss... Keir Starmer accused of 'two tier' pension plans [LATEST]
Surely, if the Government believes public sector employers cannot cope with ending this relief, it is a clear indication that private sector schemes will struggle and the change should not happen at all.
Abolishing National Insurance relief for employer pension contributions may sound attractive in theory, with estimates of raising many billions of pounds, but in practice it is a minefield which could blow up in employers’ faces.
Such a radical change to a policy which has been embedded in pension schemes for years cannot happen at a stroke.
Without detailed consultations and significant lead times to get new administration in place, it is fraught with unintended consequences.
Don't miss...
Expert warns retired women are at risk of missing out on thousands of pound [LATEST]
Your guide to the Autumn Budget and what you can expect from Rachel Reeves [LATEST]
DWP sends state pensioners urgent warning as bank accounts could be emptied [LATEST]
Trending
SUBSCRIBE Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
Millions of auto-enrolment salary sacrifice arrangements may need adjusting, to ensure workers’ take-home pay and pensions are not seriously damaged. Special agreements based on the National Insurance reliefs may need renegotiating. The complexity and time to make the necessary changes should not be underestimated.
DON'T MISS
Powered by
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
31 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Martin Lewis warns ‘vast majority' of pensioners will not get ￡475 Triple Lock boost
5 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
368 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
15 Comments
Public sector pay rises trigger massive borrowing surge
75 Comments
Staggering ‘￡32 billion' left unclaimed in DWP benefits, Martin Lewis' MSE warns
1 Comments
State pensioner battles for almost a year to get ￡17,700 in underpayments
2 Comments
Millions of workers could be missing out on more than ￡10,000 each
Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
483 Comments
Drivers face ￡43 tax rise as Rachel Reeves plans massive Budget raid
5 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
Martin Lewis warns pensioners will earn ￡112 less than Labour want them to believe
2 Comments
Charities hit out over Labour plans to slash sickness benefits by ￡1.3 billion a year
8 Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
8 Comments
Martin Lewis' ‘six-month warning' for Brits which could be worth thousands
Comments
Rachel Reeves achieves what no other Chancellor has - but she won't want to hear it
202 Comments
Labour MPs fret that Rachel Reeves's tax hikes will lead to humiliating election defeat
136 Comments
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
'I'm a financial advisor - these are the 5 taxes Rachel Reeves will target in the Budget'
71 Comments
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
31 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Martin Lewis warns ‘vast majority' of pensioners will not get ￡475 Triple Lock boost
5 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
368 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
15 Comments
Public sector pay rises trigger massive borrowing surge
75 Comments
Staggering ‘￡32 billion' left unclaimed in DWP benefits, Martin Lewis' MSE warns
1 Comments
State pensioner battles for almost a year to get ￡17,700 in underpayments
2 Comments
Millions of workers could be missing out on more than ￡10,000 each
Comments
After Winter Fuel kick in teeth... now Labour has another nasty shock for 2.5m pensioners
483 Comments
Drivers face ￡43 tax rise as Rachel Reeves plans massive Budget raid
5 Comments
Warning over Rachel Reeves' National Insurance worker pension 'tax on jobs'
3 Comments
Martin Lewis warns pensioners will earn ￡112 less than Labour want them to believe
2 Comments
Charities hit out over Labour plans to slash sickness benefits by ￡1.3 billion a year
8 Comments
Keir Starmer accused of 'two tier' pension plans that will hit the private sector hardest
8 Comments
Martin Lewis' ‘six-month warning' for Brits which could be worth thousands
Comments
Rachel Reeves achieves what no other Chancellor has - but she won't want to hear it
202 Comments
Labour MPs fret that Rachel Reeves's tax hikes will lead to humiliating election defeat
136 Comments
Rachel Reeves could plug ￡40bn gap with four 'possible' tax changes
17 Comments
'I'm a financial advisor - these are the 5 taxes Rachel Reeves will target in the Budget'
71 Comments
Your guide to the Autumn Budget - when is it and what to expect from Rachel Reeves
31 Comments
Workers with this code on payslip set to lose ￡1,500 each
Comments
Martin Lewis warns ‘vast majority' of pensioners will not get ￡475 Triple Lock boost
5 Comments
Top Labour minister flounders as Kay Burley asks him the same question 10 times
368 Comments
State pensioners will wake up to HMRC tax bill after triple lock change
15 Comments
Public sector pay rises trigger massive borrowing surge
75 Comments
Staggering ‘￡32 billion' left unclaimed in DWP benefits, Martin Lewis' MSE warns
1 Comments
I strongly advise the Chancellor against this as the costs and risks seem to have been inadequately appreciated.
This dreadful idea would cause havoc for UK pensions, potentially derail the success of auto-enrolment and further embed inequalities in pension provision for the majority of the UK workforce in the private sector.