Good from NOW – poor from HMRC


Our response so far


That we should still be talking about the “net-pay anomaly” shows how little the debate has move on in a year.

For most people losing out on their promised incentives for saving into a workplace pension , “anomaly” is not a normal word. I’d replace it with “rip-off” because that’s what HMRC are doing to thousands of people who most need a small boost to their pension savings. “Anomalies” belong to the world of Government and Industry affairs.

A year ago, the union Prospect wrote to the then Treasury Minister David Gauke asking that the “anomaly” get sorted out. This was the response they gotNOW RAS

Well, the auto-enrolment review in 2017 is soon to publish its findings. David Gauke, as the DWP’s Minister of State is responsible for the delivery of that review. The 2017-18 tax year is only a few months away and I for one am not prepared to tolerate poor people, promised a Government incentive to save, being denied that incentive by poor administration.

HMRC have not paid this proper attention so far, fortunately- one (and only one) occupational pension scheme has stepped up to the mark. Well done NOW Pensions,

“How far that candle spreads its beams, so shines “a good deed in a naughty world!”


A very good question! It is not just the smaller master trusts that operate on Net Pay, it is the bulk of occupational pension schemes run on a DC basis. SHAME ON THEM.


The net pay anomaly came about because of Government policy. It is the Government’s incentive at stake, it is for the Government as well as the private sector to work to an immediate solution.


Good for NOW Pensions. 2016/17 sorted if you’re with them. But what about 2017/18 when the employee minimum contribution triples? Will NOW be able to afford that? Is it fair that we rely on them to come up with the goods on behalf of the UK tax-payer. IT IS NOT!

The net-pay rip-off has gone on far too long. The auto-enrolment review had better have a work-a-round in it for the net pay schemes – (perhaps a subsidy on the admin costs of moving to RAS?). If this is simply kicked into the long-grass it has the potential to become a major scandal – which is the last thing the pensions industry needs right now.


About henry tapper

Founder of the Pension PlayPen,, partner of Stella, father of Olly . I am the Pension Plowman
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