The Chancellor Rachel Reeves, has now delivered the Autumn Budget 2025
So what for pensions?
The freeze on personal tax thresholds and the point where employers start paying National Insurance (called the secondary threshold) will now continue until 2031.
Need-to-knows
- There had been speculation that the Government might cut the Lump Sum Allowance but this has now been ruled out. We welcome this decision however we continue to call on the Government to rule out any change for the foreseeable future.
- There were no changes to other pension tax allowances or to the state pension triple lock. The basic State Pension will go up by £440 a year, and the new State Pension will rise by £575 a year.
- A Salary Sacrifice allowance of £2,000 will be introduced in 2029. Any salary sacrificed over £2,000 will be subject to employee and employer’s NICs. This may affect AFPS members in second careers contributing to an employer’s private pension scheme. AFPS15 Added Pension is different to Salary Sacrifice and it is our understanding will be unaffected.
We’re analysing the full Budget Report and will keep you updated on any key developments.
The policy paper can be found at Budget 2025
