Lord Blunkett: NI pensions tax raid 'very worrying'

Labour Party grandee warns against Budget levy on employer pension contributions

Jonathan Stapleton
clock • 1 min read
Lord Blunkett. Credit: Parliament.uk (CC BY 3.0)
Image:

Lord Blunkett. Credit: Parliament.uk (CC BY 3.0)

Budget plans to add national insurance to employer pension contributions are ‘worrying’ and risk damaging people’s standard of living in their retirement, Lord Blunkett says.

In a letter to The Times today (25 October), the former Labour cabinet minister – whose senior ministerial roles included secretary of state for work and pensions – said the widespread reporting of a possible extension of employers' national insurance in next week's budget is "very worrying".

He noted: "It is one thing to increase the rate of national insurance, and quite another to levy this on employer pension contributions."

Blunkett added: "As the former work and pensions secretary who signed off, with Tony Blair and Gordon Brown, pensions auto-enrolment — which recognised the genuine crisis, for generations to come, in maintaining living standards in retirement — I would advise strongly against this.

"We need more employers contributing more than the basic 3% and, with it, the corollary of savings and investment, not less. I sincerely hope the rumours are well wide of the mark."

More on Law and Regulation

Ros Altmann sets out potential pension reforms ahead of Budget

Ros Altmann sets out potential pension reforms ahead of Budget

Former pensions minister sets out 12 potential reforms and recommendations

Jasmine Urquhart
clock 13 October 2025 • 3 min read
FRC to develop technical guidance for actuaries after Virgin Media amendments

FRC to develop technical guidance for actuaries after Virgin Media amendments

Watchdog says guidance will support actuaries working with affected pension schemes

Jonathan Stapleton
clock 10 October 2025 • 1 min read
SPP raises concern to House of Lords committee on pensions IHT

SPP raises concern to House of Lords committee on pensions IHT

Group supports decision to remove pension admin responsibility for reporting

Jasmine Urquhart
clock 07 October 2025 • 1 min read
Trustpilot