Reeves is hoping to plug a hole of £30 billion by capping the amount of someone’s salary that be sacrificed without incurring national insurance payments at £2,000-a-year.
My take
Ignore the typical LBC passivity on the objectively bullshit “£30bn hole” in the budget of a govt. that prints its own money.
For reference, I make £41,500 excl. bonuses, and at 6% salary sacrifice I therefore contribute £208/mo to my pension, matched by my employer. This is ~£2500/yr for just my own contributions (not sure if emplyoer contribs. count).
This may hit the civil service particularly hard, as their employer contributions are usually to the tune of 28% or more.
The Chancellor has rebuffed suggestions that she was preparing to instead reducing the tax-free allowance on lump sum withdrawals of pensions for fears that it would hit the elderly.
My take
Poor grammar aside (isn’t it funny how the media that lords over us can’t be arsed to proof read!) this seems to be a policy aimed at punishing the youngest generations to benefit the oldest, and perhaps deliberately so to repair their polling disaster with the ReformUK voters.