Here we summarise the key pensions changes announced in the
Autumn 2025 Budget. These include a cap limiting the National
Insurance contribution exemption under salary sacrifice
arrangements, new measures to allow scheme members to benefit from
surplus payments, and an announcement on how the inheritance tax
regime will operate in relation to pension scheme death
benefits.
Here is our round up of the key pensions changes announced in
the Budget.
Changes to salary sacrifice from April 2029
From April 2029, only the first £2000 of pension
contributions that an employee makes via salary sacrifice each year
will be exempt from National Insurance contributions (NICs). It
will still be possible to make contributions above £2000 via
a salary sacrifice arrangement, but the excess will be subject to
employer and employee NICs in the same way as other employee
pension contributions. Employers will need to report the amounts
sacrificed via their existing payroll
