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Millions could lose key tax perk under new HMRC pension crackdown

A new study by Standard Life reveals 39% of employers plan to scrap salary sacrifice schemes, as businesses react to upcoming Treasury policy changes affecting pension contributions.
Rachel Reeves announced that National Insurance relief for these schemes will be capped at £2,000 starting in April 2029, a move expected to raise £4.7 billion for the Treasury.
Catherine Foot from Standard Life warned that the cap creates "Significant implications" for savings, noting cost barriers that disincentivise employers from offering schemes.
Middle and higher earners face a "double whammy" of higher personal and employer costs, while analysis suggests some workers could pay more National Insurance annually.
Michael Healy of Group said, "When earning more leaves you with less capacity to invest, that's not just a household issue- it's a structural problem." Some families could face over £13,000 losses after pay rises.

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