Any taxpayer earning over £150,000 will no longer enjoy higher-rate tax relief, which is considered a substantial incentive to save for wealthy workers. From April 2011, anyone who earns £200,000 a year, for example, and pays the typical amount of 6 per cent of their salary into their company pension scheme will lose out on £200 a month or £2,400 a year.  Alistair Darling, when he announced the move in the Budget, insisted that just 1.5 per cent of taxpayers - the equivalent of about 450,000 people - would be hit, but experts argued that it would significantly damage the already beleaguered pensions industry, and cause many savers to think twice about investing in a pension.
High earning British workers are losing their motivation to make payroll contributions into pension accounts.
The statement says that workers will lose their tax incentives to make contributions to their pensions.