Ros Altmann: Net pay schemes with low earners could become future scandal

James Phillips
clock • 2 min read

Businesses who use a net pay arrangement for defined contribution (DC) funds should reconsider enrolling their lowest earners into that scheme, Baroness Ros Altmann has said.

Employees earning less than £11,500 - the personal tax allowance - will miss out on a 25% government bonus, provided via tax credit, if they are put through this system, the former pensions ministe...

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

Are you a trustee, investment consultant or in-house pension and benefit scheme professional? You can apply for full complimentary access here

Join now

 

Already a Professional Pensions
member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Defined Contribution

SPP: The message to the government is clear - don't mandate

SPP: The message to the government is clear - don't mandate

Jeremy Goodwin says mandation would ‘drive a coach and horses’ through the prudent person principle

Jeremy Goodwin
clock 14 October 2025 • 3 min read
Most DC schemes do not offer at retirement benefit options

Most DC schemes do not offer at retirement benefit options

But TPR survey finds schemes are taking steps to review, launch or partner to provide members with solutions

Jasmine Urquhart
clock 14 October 2025 • 2 min read
L&G expands retirement planner to younger DC members

L&G expands retirement planner to younger DC members

Firm says planner has ‘significantly boosted’ retirement readiness among members approaching retirement

Martin Richmond
clock 07 October 2025 • 2 min read
Trustpilot