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Written question asked by Kevin Hollinrake (Conservative) on Tuesday, 23 June 2026, in the House of Commons. It was due for an answer on Thursday, 25 June 2026. It was answered by Dan Tomlinson (Labour) on Wednesday, 1 July 2026 on behalf of the Treasury.

Employees' Contributions and Income Tax

Question

To ask the Chancellor of the Exchequer, whether (a) her Department or (b) HMRC has undertaken (i) research and (ii) analysis on the potential impact of the level of the combined marginal rate of income tax and employee National Insurance contributions on incomes between £100,000 and £125,140 on work incentives, including the effect of student loan deductions.

Answer

The Government recognises that taxpayers earning between £100,000 and £125,140 face a higher marginal tax rate due to the tapering of the tax-free Personal Allowance, introduced in 2010-11.

A breakdown of income tax liabilities is published by HMRC, and the most recent update from June 2025 is available at: https://www.gov.uk/government/statistics/income-tax-liabilities-statistics-tax-year-2022-to-2023-to-tax-year-2025-to-2026

The Plan 2 Student Loan Scheme was introduced in 2012 under the Conservative and Liberal Democrat Coalition Government.

We will continue to keep the terms of the system under review to ensure the system protects taxpayers and students now and in the future.

Secondary information

Type
Written question
Reference
12170
Session
2026-27
Subjects
Income tax Employees' contributions Loans Research Revenue and Customs Students
Link
View this Written question on www.parliament.uk