The Treasury has released research informing its consultation on pensions tax relief in 2015, which found that a quarter of people (26%) think the government provides no top-up to pensions, while a third (33%) did not know.

It said the research on 'Pension tax relief: awareness, understanding and saving behaviours' by Ipsos Mori, based on a survey of 703 British adults aged 16–55, was intended to be published in 2016, but "due to extended pre-election periods following the EU referendum, it was not published". It was released on Tuesday following a freedom of information request.

The survey was cited by Treasury officials in justifying their decision not to reform pensions tax relief following the consultation.

Among the survey's other findings are that six in ten (59%) said that either alternative system proposed - a 30% flat rate, or a 20% relief plus tax-free pension income - was better than the existing system.

When comparing one alternative system against the other, 45% said no tax on retirement and a lower top-up was better and 28% said the flat rate system was better. However, for both systems, the majority (64% and 58% respectively) thought these different systems would make no difference to the amount they save.

The survey also found that when those with pensions who were aware of pension tax relief were asked how much the government had topped up their contributions, basic rate taxpayers said by around 8% (25% in reality) and higher rate or additional rate taxpayer said by 18% (around 67% in reality).
 

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