Government maintains auto-enrolment earnings trigger at £10,000

Wage growth results in extra £3bn in contributions

Jasmine Urquhart
clock • 2 min read

The government has confirmed the auto-enrolment (AE) earnings trigger has been maintained at £10,000 for 2024/25, following its annual review.

The Department for Work and Pensions (DWP) announced today (6 February) that the earnings trigger being maintained at this figure "represents real terms decrease in the value of the trigger" and strikes a balance between employer and employee affordability. The DWP will also maintain the lower earnings limit (LEL) at which employers and employees must pay in pension contributions, at £6,240, but will follow through on the consultation to remove the LEL in line with the 2017 AE review "at the earliest opportunity". The qualifying earnings band or upper earnings limit (UEL) which caps e...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

HMRC repays £48.5m in overpaid pensions tax in third quarter of 2025

HMRC repays £48.5m in overpaid pensions tax in third quarter of 2025

Analysis finds savers have recouped more than £1.5bn since 2015 introduction of pension freedoms

Martin Richmond
clock 03 November 2025 • 4 min read
Govt ignores pension tax lock call as petition responses top 18,500

Govt ignores pension tax lock call as petition responses top 18,500

AJ Bell started petition; Govt forced to respond after 10,000 signatures

Jenna Brown
clock 23 October 2025 • 2 min read
How SIPPs and SSASs could help power the UK's energy goals

How SIPPs and SSASs could help power the UK's energy goals

'The role of pensions in supporting renewable energy deserves further consideration'

Caitlin Southall
clock 23 October 2025 • 4 min read