The measure announced at Budget 2025 introduces a £2,000 salary sacrifice cap on pension contributions forcing employers to review their current arrangements and risking further employer pullback.

Research by the Standard Life Centre for the Future of Retirement found two in five (39%) employers offering salary or bonus sacrifice schemes said they were less likely to provide the scheme when the National Insurance relief cap comes into force. 

One in 10 (11%) have already decided to withdraw their salary sacrifice scheme completely since Budget decision.