Quilter claimed: “A quirk in the tax system means many on a lower pay rung are not receiving Government tax relief into their pension pots, because their employer has put them in a ‘net-pay’ scheme, while other workers who are in a ‘relief at source’ scheme receive the top up.
“In November 2019, the Conservative Government recognised the problem and promised to fix the system.
“Since then around £142million has been lost in pension funds. In the 2020/21 tax year 1.5 million people lost £62.60.
“While this may not seem like a huge sum when accumulated over the past number of years, once the impact of compound interest when invested in the pension in taken into account, these are significant sums of money that can make a difference to someone’s retirement.