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

PCLS after age 75: Addressing a common misconception

PCLS after age 75: Addressing a common misconception

Pension legislation does not impose an upper age limit on the payment of PCLS

Caitlin Southall
clock 14 August 2026 • 4 min read
The AI ship has sailed and pension providers are still sitting on the shore

The AI ship has sailed and pension providers are still sitting on the shore

'The AI interface has arrived'

Jonathan Lister Parsons
clock 13 August 2026 • 6 min read
CRM integration project highlights AI-powered innovation potential

CRM integration project highlights AI-powered innovation potential

Project reflects a broader shift in adviser technology

Joe Power
clock 04 August 2026 • 3 min read