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This Paper summarises the proceedings of the Savings (Government Contributions) Bill during its committee stages.
The Bill follows a Government consultation on reforming pension tax relief with the aim of strengthening the incentive to save. In his Budget 2016 speech, the then Chancellor of the Exchequer, George Osborne, announced no compulsory changes to the pension tax system, saying it was “clear that there was no consensus.” However, the Government committed itself to introduce measures to encourage saving through:
While there has been a general welcome for new measures to encourage and support saving, concerns have been raised about the potential for the LISA to undermine auto-enrolment. Questions include:
The Savings (Government Contributions) Bill was published on 6 September 2016 and had its Second Reading on 17 October 2016. It applies to the whole of the UK. The impact assessment to the Bill was published on 17 October 2016. The Library Briefing Paper for Second Reading debate is CBP-7697.
The Government made no amendments to the Bill. Opposition parties proposed a number of amendments, some of which were pushed to a vote but none of which were accepted.
Commons Briefing papers CBP-7748
Authors: Tim Edmonds; Djuna Thurley