Ros Altmann vows to tackle low earners' pension contribution 'injustice'

Pensions minister speaking in London last night

Helen Morrissey
clock • 2 min read

Pensions minister Ros Altmann has pledged to address the "major injustice" caused by net pay arrangements (NPA) that cut lower earners' pension contributions by up to 25%.

Speaking at the Headlinemoney pensions dinner last night, Altmann described the situation around NPAs as "an outrage that needs to be addressed" and "high on her list of priorities". Currently, pension contributions are calculated either through NPA where gross contributions are deducted from pre-tax pay, or relief at source (RAS) where net contributions are deducted from post-tax pay. The issue arises because of the gap that has grown between the threshold for automatic enrolment (currently £10,000 per year) and the threshold for income tax (currently 11,000 per year). If someone ...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Andrew Tully: IHT on pensions roll-out continues to 'defy logic'

Andrew Tully: IHT on pensions roll-out continues to 'defy logic'

'Government is stubbornly plodding on with including pensions in IHT'

Andrew Tully
clock 22 September 2025 • 4 min read
Royal London named most recommended personal pension provider

Royal London named most recommended personal pension provider

Aviva leads in SIPP market, Defaqto finds

Isabel Baxter
clock 18 September 2025 • 4 min read
Pensions industry must unite on small pension pot consolidation model

Pensions industry must unite on small pension pot consolidation model

Uniting behind one industry-led model would mean widescale consolidation by 2023

Martin Richmond
clock 16 September 2025 • 3 min read