Chancellor's potential salary sacrifice plan: A 'high risk gamble built on low quality data'

Govt reportedly considering introducing a £2,000 salary sacrifice annual cap

clock • 4 min read

Joseph Warne shares his concerns about potential changes to salary sacrifice being considered by Rachel Reeves in her upcoming 26 November Budget...

Rumours surrounding the UK government's potential reform of the salary exchange (or salary sacrifice) scheme are causing growing concern among employers, pension providers, benefits providers, and employees alike. The proposal, reportedly part of wider efforts to raise short-term tax revenues, could have unintended and long-lasting consequences for workplace benefits, private healthcare provision, and even the NHS itself. The proposal originates from HM Revenue & Customs' (HMRC) 2023 sample survey of 41 employers who offered a salary-sacrifice arrangement for pensions and ten employer...

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

'A paralysis of the UK pension system' - The reality of transfer delays

'A paralysis of the UK pension system' - The reality of transfer delays

Provider ‘stalling’ causing tense SASS client case

Isabel Baxter
clock 12 May 2026 • 6 min read
WBR group buys financial planning firm's SSAS book

WBR group buys financial planning firm's SSAS book

Part of long-term growth strategy

Jenna Brown
clock 05 May 2026 • 2 min read
The £22.40 question: Are clients in the dark on the full state pension?

The £22.40 question: Are clients in the dark on the full state pension?

'The political architecture is elegant, from the Treasury's perspective'

James Floyd
clock 05 May 2026 • 3 min read