Treasury: contracting-out ban not motivated by £5bn windfall

During his 2013 Budget, Chancellor George Osborne confirmed that the government will bring forward the implementation of the single-tier state pension from 2017 to 2016, which will also herald the end of contracting-out a year earlier than defined benefit (DB) schemes had planned for. Schemes will lose their National Insurance rebates for contracted-out workers, meaning they will pay about £650 extra per worker each year, while the Exchequer will receive an extra £5.5bn, according to Hargreaves Lansdown head of pensions research Tom McPhail. However, at the National Association of Pen...