Cost of pension tax relief for govt rose 8% in two years

Estimated £41.3bn in 2019/20

clock • 2 min read
Cost of pension tax relief rose 8% amid minimum contribution rate increase
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Cost of pension tax relief rose 8% amid minimum contribution rate increase

The gross cost of pension tax relief has risen by £4.4bn (8%) from 2017/18 to 2019/20, according to HM Revenue & Customs estimates published on Thursday.

The 8% increase over the two-year period was partly due to the rise in compulsory combined contributions under automatic enrolment from 2% in 2017/18 to 8% in 2019/20. Essentially, when compulsory contribution...

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