Experts are warning that Rachel Reeves' decision to cap the National Insurance advantages of pension salary sacrifice at £2,000 a year risks dismantling one of the UK's most widely used workplace savings tools, and may force smaller employers to freeze hiring or scale back staff benefits. The Treasury expects the change to raise £4.7 billion in 2029/30, rising from workers and employers who currently benefit from unlimited NI relief when pension contributions are made via salary sacrifice.
