Rachel Reeves’s £5bn salary sacrifice raid will leave almost three million workers poorer in retirement, it has been reported.
Salary sacrifice schemes allow workers to give up a portion of their pay for tax-free pension contributions.
The Chancellor announced in her Budget a £2,000 cap on the amount workers can pay into their pension via these scheme, before contributions are liable for National Insurance. The Treasury estimates this move will raise £4bn.
According to official data obtained by The Daily Telegraph via a Freedom of Information request, shows 2.9 million taxpayers will now save less, including 666,000 workers who earn the basic rate below £50,271 a year.
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