Cost of pension tax relief rises to £27bn, HMRC figures reveal

' A cause for celebration not a justification for cuts'

Jasmine Urquhart
clock • 1 min read

The cost of pension tax relief has risen to £27bn in 2022/23, according to government figures released today (12 January).

The figures from HM Revenue & Customs show the estimated cost of income tax relief on pension contributions in the 2022-23 tax year is likely to be around £5bn higher than five years ago, and will now constitute around 1.1% of gross domestic product. Source: HMRC Non-structural tax relief statistics (January 2023), Section 7.15 According to Lane Clark and Peacock (LCP), the figures should be welcomed as evidence of the success of auto enrolment (AE), which has seen 10 million additional people enrolled into workplace pensions LCP added that the increase in the minimum mandatory...

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

Minister confirms second phase of Pensions Review due to launch 'shortly'

Minister confirms second phase of Pensions Review due to launch 'shortly'

Torsten Bell spells out ‘shared direction’ of pension reform

Jonathan Stapleton
clock 06 June 2025 • 2 min read
Industry welcomes 'blockbuster' Pension Schemes Bill

Industry welcomes 'blockbuster' Pension Schemes Bill

Bill hailed as a ‘once in a generation’ opportunity for workplace pensions

Martin Richmond
clock 05 June 2025 • 6 min read
'Game changer' Pension Schemes Bill to be laid in parliament today

'Game changer' Pension Schemes Bill to be laid in parliament today

Bill introduces series of measures including value for money on DC

Martin Richmond
clock 05 June 2025 • 2 min read