The following was announced on Tuesday 21st January 2025:
Automatic enrolment (AE) into workplace pensions has transformed workplace pension saving for millions of workers. The Government is committed to looking at long-term steps we can take to further improve pension outcomes.
I have completed this year’s annual statutory review of the thresholds within Automatic Enrolment. The main focus of this year’s annual statutory review of the AE earnings trigger and lower and upper earnings limits of the qualifying earnings band (the AE thresholds) has been to ensure the continued stability of AE for employers and individuals. It is important that AE works for individuals, supporting those for whom it makes economic sense to save towards their pensions whilst also ensuring affordability for employers and taxpayers.
The thresholds review has therefore concluded that all AE thresholds for 2025/2026 will be maintained at their 2024-2025 levels.
The 2025/2026 Annual Thresholds
The automatic enrolment earnings trigger will remain at £10,000.
The lower earnings limit of the qualifying earnings band will remain at £6,240.
The upper earnings limit of the qualifying earnings band will remain at £50,270.
The analysis supporting the review will be published and a copy will be placed in the Library of the House.
Opinion
At last, the final vital piece of information in preparation for the 2025/2026 UK tax year has been confirmed by the new Minister for Pensions. Fortunately, a freeze has been confirmed. When changes are announced in future a much earlier announcement date aligning more with the former autumn timing is necessary so that employers can both plan and financially prepare for change.
PAYadvice.UK 21/1/2025