PolicyEngine revenue estimates (2029-30)

Employee response
Maintain pension
Take cash
Spread cost
£4.2bn
per year
£7.4bn
per year
Absorb cost
£4.6bn
per year
£7.8bn
per year
Employer response ↑

Revenue varies by behavioural assumptions. "Maintain Pension" assumes employees redirect excess contributions to regular pension schemes (keeping NI relief loss only). "Take Cash" assumes employees take excess as taxable income. "Spread Cost" assumes employers pass NI costs across all workers; "Absorb Cost" assumes employers bear the cost.