Industry feedback overseen by the Society of Pension Professionals has shown that a majority of SPP members would like to see proposed government changes to salary sacrifice be scrapped.
From April 2029, the amount that is exempt from National Insurance contributions will be restricted to just £2,000 a year for employee contributions made via salary sacrifice.
After attendees at the SPP event had heard from a panel of expert speakers about the costs and benefits of salary sacrifice, they were asked what they think should happen next.
Nearly two thirds of respondents (62 per cent) indicated they would like the reforms scrapped compared to only 5 per cent who agreed with the government that the reforms should be implemented in their current form.
Nearly a quarter (24 per cent) opted for the reforms to be implemented but in a different form and just 9 per cent chose the option, “Salary Sacrifice for pension contributions should be abolished altogether.”
SPP member Steve Hitchiner, who chaired the event, says: “This industry polling reveals strong support for rethinking these reforms, which is not a huge surprise given the changes will result in higher costs to employees – including over 850,000 basic rate taxpayers – and employers, along with less pension saving when more saving is needed.”
The SPP is the representative body for a wide range of providers of advice and services to pension schemes, trustees and employers.