A Bill to Make provision to amend section 4 of the Social Security Contributions and Benefits Act 1992, and section 4 of the Social Security Contributions and Benefits (Northern Ireland) Act 1992, so that amounts of salary sacrificed for employer pensions contributions pursuant to optional remuneration arrangements are liable to national insurance contributions.
Second reading - the general debate on all aspects of the bill - took place on 4 February. What happens next? Committee stage - line by line examination of the bill – is scheduled for 24 February.
This bill changes how National Insurance is charged on money employees sacrifice from their pay to fund employer pension contributions under salary sacrifice schemes. It amends the NIC rules in the Social Security Contributions and Benefits Act 1992 (and the Northern Ireland version) so those sacrificed amounts are subject to National Insurance.
The bill is currently in Committee stage in the Lords after passing Second Reading and related stages in the Commons. The next step is Lords Committee scrutiny, followed by further Lords stages and, if approved, Royal Assent.
In the Commons, major votes showed broad support for the main measures (Second Reading: 312–165; Third Reading: 316–194). Amendments proposed in Committee were defeated (e.g., New Clause 5: 195–317; Amendment 5: 191–326). Voting patterns were mixed across parties rather than strictly along party lines.
Generated 21 February 2026
Based on 6 recorded votes • Sorted by % Aye
Second reading - the general debate on all aspects of the bill - took place on 4 February.
What happens next?
Committee stage - line by line examination of the bill – is scheduled to begin on 24 February.