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paperwork with the words 'TAX RELIEFS' showing
Updated on 6 April 2026

Pension tax relief: problems for low earners

Due to the way tax relief is given for employees paying into net pay arrangement pension schemes, some low earners currently do not receive the same tax relief as those who pay into a relief at source pension scheme. Here we look at the problem and also tell you about the ‘low earner’s pension ...

a calculator with the words 'TAX RELIEF' typed on it.
Updated on 6 April 2026

How tax relief is given on pension contributions

If you are paying into a pension, the way you receive pension tax relief depends on what type of pension scheme you are in. This page provides more detail on the different ways that tax relief is given on pension contributions. 

a red background and wooden table, a brown sack with an image of money drawn on the front sits next to a wooden figure of a state building, in front of this a scattering of coins can be seen.
Updated on 6 April 2026

Pension contributions: effect on state benefits

The overall cost of pension contributions may be lower than you think if you are in receipt of certain state benefits. This is because when calculating income for universal credit you are able to deduct 100% of pension contributions – resulting in a higher award. There may be interactions with ...

a sheet of paper with 2 options and tick boxes on it, the first option reads 'WORKPLACE PENSION' and this is ticked, the second option reads 'PRIVATE PENSION'
Updated on 6 April 2026

Pensions: auto-enrolment into workplace pensions

Under auto-enrolment, employers must automatically enrol eligible workers into a qualifying pension scheme. Workers not automatically enrolled can opt in to a pension scheme, if they wish. 

a post-it note against a dark coloured desk that reads 'PENSION TAX RELIEF' next to this is a leather folder, a pair of glasses and a black marker pen.
Updated on 6 April 2026

Tax relief on pension contributions

Most people get a government top-up to their pension savings in the form of tax relief on their contributions. The way it is given depends on what kind of pension scheme you are in. 

a piggy bank, a jar of coins and a piece of paper with the words 'STATE PENSION' written on it.
Updated on 6 April 2026

The state pension

The state pension is a taxable state benefit paid by the government to certain people who have reached state pension age. 

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