With people on low incomes charged 25% more for their pension contributions due to the way their employer’s pensions schemes operate, the LITRG is urging the government to take action.
There are an estimated 1.5 to 1.75 million people impacted by this and most of them are women, and so alongside other members of the Net Pay Action Group, the Low Incomes Tax Reform Group (LITRG) is proposing that HMRC reimburse the tax relief that affected individuals have missed out on.
The LITRG suggests that HMRC could take data they already receive from employers to work out the amount due.
Victoria Todd, Head of LITRG, said, “Action must be taken to ensure all low-income workers get a government contribution to their pension, as was promised under auto-enrolment. Currently an estimated 1.5 to 1.75 million people miss out – three-quarters of whom are women.”