HMRC has confirmed that while the top-up payments for individuals affected by the net-pay anomaly will still be made for the 2024/25 tax year, these payments are likely to be offered later than planned, in 2026.

The net-pay anomaly affects workers who earn more than the auto-enrolment threshold of £10,000 a year, but who are under the income tax threshold, with women in low-paid or part-time roles particularly hard hit.

The Conservative government previously confirmed plans to address the net-pay earners loophole through a top-up system in October 2021, having initially committed to addressing the issue in its 2019 manifesto.

HMRC’s latest Pension Schemes Newsletter confirmed that the current government remains committed to this policy, which will see approximately one million individuals in net pay schemes offered an annual payment of around £70.

In line with this, it said that the government will legislate to ensure that the top-up payment will not impact benefit entitlement or national insurance.

HMRC also reassured the industry that the impact on pension scheme administrators is expected to be minimal, as it will contact and pay eligible individuals directly.

However, HMRC confirmed that while top-up payments for individuals will still be made for the 2024/25 tax year and subsequent years, the payments for 2024/25 are likely to be offered later than planned, and are expected in 2026.

This delay is expected to prompt some concern within the industry, as pension organisations had already previously raised concerns over the fact savers would have to wait until 2025 to get these payments.

It should be pricking the humanity of those who care how low-earners are treated.

Baroness Ros Altmann , LITR and the many individuals who have been campaigning for proper restitution had been prepared to wait for the limited promise , provided it was paid at the latest at 2025.

But it seems to be a matter of little interest to HMRC and HMT to the point that nothing has come out officially.

Clearly HMRC will get away with not paying the amounts due as promised and think they’ll get away with it.

I want a proper announcement of delays, not something leaked out like this

It may not mean any bother to pension scheme administrators, but it will mean that the poor who pay under auto-enrolment into workplace pensions, will be denied money due back another year.

They are not getting any notice of this, they are not reading HMRC pension newsletters, Pension Age or this blog. In short they are being marginalised behind the lead stories on Inheritance Tax.

Disgrace be on your head HMRC.