Pension Professionals Oppose UK Salary Sacrifice Reforms
A majority of pension professionals in the UK oppose planned reforms to salary sacrifice arrangements for pensions, according to a poll by the Society of Pension Professionals (SPP). Nearly two-thirds (62%) want the changes scrapped entirely. The proposed reform would introduce an annual £2,000 cap on employee contributions made through salary sacrifice from April 2029 without triggering national insurance charges. Only 5% supported implementing the reforms as currently drafted, while around a quarter believed they should be modified before proceeding. SPP member Steve Hitchiner highlighted concerns that the changes would increase costs for employees and employers alike and discourage pension saving at a time when it is most needed. The poll followed an industry webinar attended by over 250 professionals. Hitchiner urged the government to reconsider its approach, suggesting alternative solutions could achieve policy goals without harming incentives or placing additional financial burdens on workers.
Topics: national insurance contributions pension reform salary sacrifice