Salary sacrifice crackdown: How Rachel Reeves’ UK Budget 2025 pension tax raid could hit millions of workers
Chancellor Rachel Reeves is expected to announce a £2,000 annual cap on National Insurance-free salary sacrifice for pensions in her Budget today, according to multiple reports. The Treasury reportedly does not know how many workers would be affected. The Financial Times estimates the wider pensions tax package could raise over £3 billion a year. Opposition parties have accused Reeves of risking workers’ retirement savings.