Budget changes will delay S2P reform

The latest PPI Briefing Note: 'Was Budget 2007 good for pensioners?' reveals Gordon Brown’s decision to increase the Upper Earnings Limit (UEL) for National Insurance (NI) contributions to match the new higher rate tax threshold of £43,000, from 2009, will delay the reform of the S2P. It points out while the alignment of the UEL for NI contributions with the higher rate tax band will increase the revenue collected in the NI fund, it warns “unless the link between S2P and NI contributions is broken before 2012, it will also increase the annual build-up of S2P for people earning above the ...