Net-pay plan is not a proper resolution

Baroness Ros Altmann says pitfalls in the remedy need to be addressed

clock • 3 min read
Net-pay plan is not a proper resolution

At last, the government has published plans to ‘fix’ the net-pay pension tax anomaly and I am delighted to see serious proposals to tackle this problem. This issue remains an underlying risk for pension confidence and the sooner it is tackled, the better.

Pension schemes administered on a net-pay basis reduce the take home pay of over a million of the lowest earners in defined contribution (DC) pension schemes - those earning under £12,570 a year. E...

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

More on Defined Contribution

Partner Insight: The future belongs to scale – but there's more to it

Partner Insight: The future belongs to scale – but there's more to it

As the market consolidates, what does it mean for members and trustees?

Jerry Butcher, Workplace Savings Director, Scottish Widows
clock 16 July 2026 • 5 min read
DC entering 'new phase' with master trusts now 'dominant' in large scheme market

DC entering 'new phase' with master trusts now 'dominant' in large scheme market

Howden research reveals master trusts now account for 41% of large DC schemes

Holly Roach
clock 09 July 2026 • 1 min read
UK Pension Schemes Act - Turning reform into better retirement outcomes

UK Pension Schemes Act - Turning reform into better retirement outcomes

Steve Charlton says reforms should be judged by whether they actually improve outcomes

Steve Charlton
clock 06 July 2026 • 3 min read
Trustpilot