Overview
- The i Paper reports the Chancellor has ruled out a flat‑rate overhaul of pension tax relief and cutting the tax‑free lump sum, focusing instead on limiting salary‑sacrifice NI advantages.
- Treasury options under discussion include capping NI‑free salary‑sacrifice pension contributions at about £2,000 a year, a change reported to raise roughly £2bn.
- The Institute for Fiscal Studies estimates threshold freezes will raise about £39bn a year by 2029–30 and project the full new State Pension will exceed the personal allowance in 2027–28.
- Industry bodies including Pensions UK and the Federation of Small Businesses have warned in a letter that curbing salary sacrifice would deter saving, shrink future pension pots and risk lower employer contributions.
- An FOI highlighted by Sir Steve Webb reveals DWP estimates that about 14.6 million working‑age people are on course for a sharp drop in retirement living standards, with outcomes worsening if the triple lock is weakened.