'Messy' net-pay remedy to miss 85% of affected savers

Government estimates low take-up of tax relief top-ups as savers to be asked to apply

James Phillips
clock • 4 min read
Baroness Ros Altmann, who says it is 'disappointing that nothing will change before 2025'
Image:

Baroness Ros Altmann, who says it is 'disappointing that nothing will change before 2025'

Only 15% of those affected by the net-pay anomaly are expected to take up the free cash on offer from the government, Treasury estimates reveal.

As announced in yesterday's Autumn Budget, those impacted by the long-running net-pay issue will be offered a 20% "top-up" to their contributions from the 2024/25 tax year, to be paid the following...

To continue reading this article...

Join Professional Pensions

Become a Professional Pensions Lite Member today

  • Three complimentary articles per month covering the latest real-time news, analysis and opinion from the industry
  • Receive important and breaking news stories via our two daily news alerts
  • Hear from industry experts and other forward-thinking leaders

Join now

 

Already a Professional Pensions
member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Defined Contribution

Average pension transfer times fell during 2024 while values grew

Average pension transfer times fell during 2024 while values grew

Origo data shows overall pension transfer times took 12.3 days to complete last year

Martin Richmond
clock 24 February 2025 • 2 min read
Partner Insight: Why more support is needed to help avoid retirement savings shortfall

Partner Insight: Why more support is needed to help avoid retirement savings shortfall

With some retirees facing nearly a decade of unfunded retirement, Jayesh Patel - Head of DC Clients at Legal & General - discusses how to help savers better plan for the duration of their retirement years.

TPR changes approach to DC supervision and regulation

TPR changes approach to DC supervision and regulation

TPR plans to split DC schemes with similar risk profiles into four segments of supervision

Holly Roach
clock 20 February 2025 • 2 min read
Trustpilot