§ Baroness Castle of Blackburn
asked Her Majesty's Government:
Why tax relief is given on contributions to occupational pension schemes and personal pensions but not on contributions to SERPS. [HL2407]
§ Baroness Hollis of Heigham
Tax relief is awarded in respect of contributions to occupational and personal pension schemes to encourage people to make pensions provision for their retirement. Adopting the same treatment for National Insurance contributions in respect of SERPS would result in a significant loss to the Exchequer which would have to be made good by an increase in the rate of taxation, or by corresponding reductions in other tax allowances.