Net-pay scheme members to get 20% top-up from 2024

Government sets out plans to address low-paid anomaly in tax relief treatment

James Phillips
clock • 2 min read

The government has set out plans to address the net-pay anomaly with a 20% top-up to contributions from April 2024.

As part of the Autumn Budget today, the Treasury said it would introduce a system to make top-up payments to low-earning individuals in a net-pay arrangement. Currently, savers whose earnings fall below the personal tax threshold, and are members of net-pay schemes, lose out on 20% tax relief which is automatically applied to savers in relief-at-source schemes. The majority of master trusts use this structure, which has previously been described as a "hidden scandal". The government said its plan would "help to better align outcomes with equivalent savers" in relief-at-source schem...

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James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

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