LITRG urges government to tackle low-income pension ‘injustice’

The Low Incomes Tax Reform Group (LITRG) announced its disappointment in the government for the lack of progress towards rectifying net pay pension schemes that sees an estimated 1.5m low-income workers paying a 25% penalty for their pension savings

The LITRG state that this issue can cost those affected, three-quarters being women, around £65 a year due to the way their employers’ pensions schemes operate.

After the government published responses to several tax consultations on Tuesday, but did not publish a response to the call for evidence on the ‘pensions tax administration’ which covers this issue, the LITRG has called on the government to commit to their 2019 manifesto promise on net pay pension schemes and to deal with the ‘injustice’.

The LITRG states that it is ‘disappointing’ that the government has not taken the opportunity presented by Tuesday’s ‘Tax legislation day’ to respond to the call for evidence it published a year ago following its manifesto commitment on the issue.

In its

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