National Insurance Contributions (Employer Pensions Contributions) Bill: HoC backs pension salary sacrifice reform despite opposition
The House of Commons (HoC) completed the Committee of the Whole House and Third Reading Stages of the National Insurance Contributions (Employer Pensions Contributions) Bill on 21 January 2026, assisting the progress of the introduction from 6 April 2029 of a £2,000 cap above which salary-sacrificed employer pension contributions will have a primary and secondary Class 1 National Insurance contributions (NICs) charge applied. At Committee stage, opposition parties sought to narrow or delay the measure and to require further scrutiny, but the government, represented throughout by Torsten Bell, the Parliamentary Secretary to the Treasury and Minister for Pensions, resisted all proposed changes and the Bill emerged unamended. On the same day at Third Reading, Torsten Bell said reform was inevitable because of the rising cost of pension salary sacrifice and defended the Bill as a pragmatic compromise that retained £2,000 of NIC-free saving with a long lead-in period. Despite opposition MPs opposing the Bill on the grounds of complexity, distributional impact, and pension adequacy, the Commons passed the Bill unamended by 316 votes to 194 and it now proceeds to the House of Lords.