Salary sacrifice cap will see 2.8m employees cut pension saving

1 Jun 2026

Nearly three million pension savers in work set to reduce amount of money they pay into pensions show latest figures from HMRC in first indication of the sweeping impact of the change to tax relief

A Freedom of Information (FOI) request to HMRC by pensions expert and LCP partner Steve Webb disclosed that 2,888,000 workers are expected to cut back on pension saving once new restrictions on the use of salary sacrifice by employers come into force in April 2029 based on assessments by the tax authority.

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