Campaigners urge government to act on pensions pledge

Pensions and tax experts are calling on the government to act quickly to deliver its manifesto promise to fix an unfair tax flaw. This results in about 1.7 million low-income workers (mostly women) being unfairly charged 25% more for their pensions due to the way their employer pension scheme operates.

The Net Pay Action Group (NPAG) – made up of pension providers lawyers tax specialists payroll specialists employers consumer groups and policy experts – has warned that this issue threatens to damage public confidence in auto-enrolment widen the gender pensions gap and let down those who need to increase their retirement savings most.

In essence individuals who are members of net-pay schemes but whose earnings fall below the personal tax threshold lose out on 20% tax relief; savers in relief-at-source schemes receive this automatically.

The group wants the government to consider its proposed solution of...