Npss cap has been reconsidered - Hutton

In the personal accounts white paper, which closes on 20th March, the Department for Work and Pensions (DWP) suggested contributions into the new scheme should be capped at £10,000 in the first year and then £5,000 for every subsequent year. However, the proposed limit is £2,000 higher than Lord Turner’s recommendation of £3,000 and many in the industry have raised concerns the cap is too high for the target market. The government has previously defended the move by claiming there is a danger people on low incomes will not contribute more than the minimum level, and the increased cap ...