In the Budget, the government confirmed that it will introduce a system to make top-up payments for contributions made in 2024-25 onwards directly to low-earning individuals saving in a pension scheme using a net pay arrangement.

These top-ups will help to better align outcomes with equivalent savers saving into pension schemes using Relief at Source.

An estimated 1.2 million individuals could benefit by an average of £53 a year.

A response to the Call for Evidence on pensions tax relief administration providing further details is also being published at the Budget and Spending Review.