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MPAA reduction consultation response


If you’re covering the Chancellor’s decision to scrap the increase to National Insurance Contributions announced in the budget, please see the following comment from Jon Greer, pensions expert at Old Mutual Wealth. 

Jon Greer“Such a high profile Budget 'U-Turn' will damage the credibility of the measured and methodological 'spreadsheet Phil’. The former Chancellor, George Osborne, had a reputation as a maverick capable of both an 'omni-shambles' Budget, but also credited with revolutionising retirement with his 2014 surprise pension reforms. Hammond had been positioned as a more considered, consultative successor. 

“More broadly, the continual rocky ride of pension tax rules and regulation further cements the need for a  separate pension commission. This commission could scrutinise the long-term savings policy landscape and help ensure that any changes dreamt up in a policy silo at the Treasury do not derail other policy initiatives. The real risk is that the Chancellor targets pensions tax relief to make up the shortfall the increase in Class 4 National Insurance would have provided.

“The small increases to the national insurance contributions from the self-employed were supposed to guard the government’s funds against the increasing threat of a growing tax gap.  It felt like an attempt to solve an issue that required a much more fundamental review of the distortions provided by the current tax system.

“Greater attention will now be paid to the auto-enrolment review. The self-employed are currently excluded from the private pension system unless they make their own arrangements. The government has already said they are looking to address this imbalance and ensure the self-employed enjoyed a comparable opportunity to save for their retirement. However, this u-turn suggests a ‘pseudo auto-enrolment’ for the self-employed funded through national insurance contributions would be unpalatable so the government may need to explore other avenues.”

For more information contact

Kathleen GallagherOld Mutual Wealth023 8072 629307990

Notes to editors:

About Quilter plc:

Quilter plc is a leading wealth management business in the UK and internationally, helping to create prosperity for the generations of today and tomorrow.

Quilter plc oversees £118.1 billion in customer investments (as at 30 September 2018).

It has an adviser and customer offering spanning: financial advice; investment platforms; multi-asset investment solutions and discretionary fund management.

The business is comprised of two segments: Wealth Platforms and Advice and Wealth Management.

Wealth Platforms includes the Old Mutual Wealth UK Platform; Old Mutual International, including AAM Advisory in Singapore; and the Old Mutual Wealth Heritage life assurance business.

Advice and Wealth Management encompasses the financial planning network, Intrinsic; Quilter Private Client Advisers; discretionary fund management business, Quilter Cheviot; and Quilter Investors, the Multi-asset investment solutions business.

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• The Multi-asset business is now Quilter Investors

• Intrinsic to Quilter Financial Planning

• The private client advisers business is now Quilter Private Client Advisers

• The UK Platform to Quilter Wealth Solutions

• The International business to Quilter International

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• Quilter Cheviot will retain its name

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