Rachel Reeves to change pension salary sacrifice schemes — what you need to know

• Rachel Reeves has announced that the Government will cap the amount of money people can contribute to private pensions via salary sacrifice before it incurs tax.
• The new limit for tax-free contributions through a salary sacrifice scheme will be set at £2,000.
• Any contributions exceeding this £2,000 cap will be subject to National Insurance contributions.
• This policy change is scheduled to take effect from 2029 and the measure is estimated to raise £4.7 billion in 2029/30 and £2.6 billion in 2030/31.
• Employers may offer salary sacrifice as part of their pension scheme as a tax efficient way to help workers boost their pots.

IN FULL

How salary sacrifice schemes changes in Rachel Reeves’ Budget will affect you