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UK Considers £2,000 Cap on Salary Sacrifice Benefits

11/16/2025

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Summary

Story summary

The UK government is reviewing pension schemes, including salary sacrifice arrangements where employees swap salary for higher employer contributions.
The government could introduce a £2,000 cap on the tax benefits of salary sacrifice.
Amanda Blanc, chief executive of Aviva, says the change could deter pension saving.
Separately, speculation about cutting the tax-free cash limit appears off the table, easing retirement-saving concerns.

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Story summary

The UK government is reviewing pension schemes, including salary sacrifice arrangements where employees swap salary for higher employer contributions.
The government could introduce a £2,000 cap on the tax benefits of salary sacrifice.
Amanda Blanc, chief executive of Aviva, says the change could deter pension saving.
Separately, speculation about cutting the tax-free cash limit appears off the table, easing retirement-saving concerns.