National Insurance Contributions (Employer Pensions Contributions) Bill: motion to disagree with Lords Amendment 2

On 23 March 2026, the House of Commons voted by 279 to 167 to reject Lords Amendment 2 to the National Insurance Contributions (Employer Pensions Contributions) Bill. The amendment, passed in the House of Lords, would have introduced protections or review requirements around the government's plan to impose national insurance contributions on employer pension contributions made through salary sacrifice arrangements. The Commons voted to disagree with the Lords, removing that amendment from the Bill.

The vote advances the government's plan to levy employer national insurance on salary sacrifice pension contributions, subject to a cap of £2,000 per employee. The change is not due to take effect until 2029. Proponents argue it addresses the rising cost of tax relief, which currently stands at approximately £70 billion per year, and raises revenue to support public services. Critics contend it discourages pension saving, particularly for lower and middle-income earners, creates administrative burdens for businesses, and could widen the pensions gap over time by reducing the financial incentive to participate in salary sacrifice schemes.

The vote divided almost entirely along party lines. All 278 Labour and Labour Co-operative MPs who voted backed the government, with no rebels. All 88 Conservatives, 57 Liberal Democrats, 6 SNP members, 5 DUP members, 4 Reform UK members, and 3 Plaid Cymru members voted against. Two independents voted with the government while four voted against. The division is one of several on the same day, with the government winning parallel votes to reject Lords Amendments 1, 3, 5, and 6 by similar margins, indicating a sustained effort by the Lords to modify the Bill across multiple fronts, each of which the Commons overturned.