Now:Pensions boost for low-paid workers
StockMarketWire.com - Now:Pensions' decision to give low-paid customers the tax relief that is denied to them by current Treasury rules has been welcomed by former pensions minister Ros Altmann.
She said: "Any worker earning under £11,000 last year was entitled to 20% tax relief (which amounts to a 25% Government bonus) on their pension contributions.
"If their pension scheme operates on a Relief at Source basis they will have received the money.
"But if the pension provider chosen by their employer is administered on a Net Pay basis, then these low earners, mostly women, cannot get the 25% top-up.
" So many women and other low earners are forced to pay 25% more for their pension than they should.
"This scandal has been going on for a long time, but the Government has failed to address it.
"It is good to see one company taking the moral high ground.
"Now:Pensions is a NetPay scheme, but it has chosen to give the extra money to its low earning customers from its own pocket. None of the other Net Pay schemes has been willing to ensure low earners do not lose out."
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