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Tax Change Could Slash Take-Home Pay for Millions

11/8/2025

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Summary

Story summary

Steve Hitchiner, chairman of the SPP tax group, says abolishing or reducing salary sacrifice for pensions would act as a tax on working people and cut take-home pay.
An employee earning £40,000 could lose £160 annually if tax breaks were removed.
The SPP says the change could lead to lower wage increases and reduced hiring.
Pension consultants LCP estimate that over three million basic rate taxpayers might be affected.

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Story summary

Steve Hitchiner, chairman of the SPP tax group, says abolishing or reducing salary sacrifice for pensions would act as a tax on working people and cut take-home pay.
An employee earning £40,000 could lose £160 annually if tax breaks were removed.
The SPP says the change could lead to lower wage increases and reduced hiring.
Pension consultants LCP estimate that over three million basic rate taxpayers might be affected.