Tax rethink urged

Ministers urged to rethink tax relief rules Campaigners are calling on ministers to offer greater support to people in part-time and low-paid jobs who are losing out on pension savings, with rules leaving 1.7m low earners without tax relief on their savings. Those affected earn between £10,000 to £12,500, enough to qualify for automatic pension enrolment, but not enough to pay income tax. As they have no tax deductions, they get no tax relief on their pension contributions – meaning their contributions cost 25% more than those on a slightly higher wage. Analysis shows that around two-thirds of the workers affected are women. Urging a rethink on the rules, signatories including former Pensions Minister Sir Steve Webb, the TUC and the Low Incomes Tax Reform Group have written to ministers, MPs and the Department for Work and Pensions.