02 December 2025
National Insurance relief on salary sacrifice pension contributions will be capped at £2,000 from April 2029.
Only allowing a certain value to be contributed into pension schemes with National Insurance contribution savings may deter employees from saving over £2,000 a year into their pension and will increase employers’ National Insurance bills.
This will no doubt generate additional revenue, however; it comes at a cost to the working person, particularly those who are trying to plan and save for the future by putting more of their earnings into pension schemes.
The CIPP will be discussing this with Government to share our members’ views and prior to the Budget, the Policy Team contacted the Pensions Minister to raise our concerns.
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