The UK Parliament’s House of Lords has completed committee stage scrutiny of the National Insurance Contributions (Employer Pensions Contributions) Bill, which would empower the government to apply a National Insurance contributions charge where employer pension contributions made via salary sacrifice arrangements exceed GBP 2,000 per annum. During the line-by-line examination, peers considered amendments covering potential exemptions for basic rate taxpayers in England, Wales and Scotland, the ability to carry forward unused contributions from previous tax years, uprating the GBP 2,000 cap by the percentage change in the consumer price index, a review of the impact on small and medium sized enterprises, and the calculation and publication of lifetime pension values. The bill is scheduled to proceed to report stage on Thursday 5 March, following second reading on Wednesday 4 February.
UK Parliament 2026-02-25
UK Parliament House of Lords completes committee scrutiny of bill to apply NICs to salary sacrifice pension contributions above GBP 2,000
The UK House of Lords has completed committee stage scrutiny of the National Insurance Contributions (Employer Pensions Contributions) Bill, imposing a charge on employer pension contributions exceeding GBP 2,000 annually via salary sacrifice. Amendments considered include exemptions for basic rate taxpayers, carrying forward unused contributions, and reviewing impacts on SMEs. The bill advances to report stage on 5 March.