National Insurance Contributions (Employer Pensions Contributions) Bill: motion to disagree with Lords Amendment 5

MPs voted on 23 March 2026 to reject Lords Amendment 5 to the National Insurance Contributions (Employer Pensions Contributions) Bill, by 281 votes to 167. The Lords had inserted the amendment to protect employer pension contributions made through salary sacrifice arrangements from a planned increase in employer National Insurance, but the elected Commons overturned it. This was one of a series of votes that evening on twelve Lords amendments to the same Bill, all of which the government moved to reject, with similarly decisive margins across each division.

The Bill introduces new National Insurance charges on employer pension contributions made through salary sacrifice arrangements, a form of pay arrangement where employees give up part of their salary in exchange for pension contributions paid directly by their employer, which have historically attracted National Insurance relief. The government argues that the cost of pension tax reliefs is rising sharply and must be kept under review as part of sound public finances. Opponents, including Conservatives, Liberal Democrats, the DUP, the SNP, Plaid Cymru, and Reform UK, contend that the change discourages pension saving, hits small businesses, and risks widening the gap between those who do and do not save adequately for retirement. The change is not due to take effect until 2029-30.

Labour MPs voted unanimously in favour of rejecting the Lords amendment, while every Conservative, Liberal Democrat, DUP, SNP, Plaid Cymru, and Reform UK MP who voted did so against. There were no notable cross-party rebellions on the government side. The Bill has attracted significant opposition in the House of Lords, where, as the Conservative shadow minister noted in debate, the government did not win a single vote during its passage through the upper chamber. The Commons has now systematically reversed all twelve Lords amendments, asserting financial privilege, the constitutional principle that the elected Commons has primacy over money matters.