The automatic enrolment earnings trigger determines at what point an eligible person gets automatically enrolled into a workplace pension.
The qualifying earnings band sets minimum contribution levels for money purchase pension schemes. The minimum of the band is also relevant for defining who can opt in if they earn under the earnings trigger. The government reviews these every year and revises them if appropriate.
Annual Review (2026 to 2027)
Section 14 of the Pensions Act 2008 places a duty on the Secretary of State to consider every tax year whether the threshold amounts should be changed.
For the review for 2026 to 2027 the Secretary of State believes that it is important to provide continued policy stability during the period of the Pensions Commission. The Secretary of State has therefore decided to maintain the existing threshold values for 2025 to 2026 into the 2026 to 2027 tax year.
Earnings Trigger
He has concluded that the existing threshold of £10,000 for the earnings trigger should be retained for 2026 to 2027. As earnings continue to grow, keeping the earnings trigger at £10,000 is estimated to see private sector pension participation at 16.9 million in total, an increase of around 39,000 when compared with 2025 to 2026.
Qualifying Earnings Band – Lower Earnings Limit (LEL)
He has also decided to maintain the LEL at the 2025 to 2026 level at £6,240.
The decision to maintain the LEL at the existing level supports the principle of ensuring that everyone who is automatically enrolled would continue to pay contributions on a meaningful proportion of their income.
Qualifying Earnings Band – Upper Earnings Limit (UEL)
The UEL caps mandatory employer contributions. It aims to distinguish the AE target group of low to moderate earners and the statutory minimum contributions from higher earners. These higher earners might reasonably be expected to have access to a pension scheme that offers more than the minimum and are more likely to make personal arrangements for additional saving. The Secretary of State has concluded that mandatory employer contributions should remain capped and that the value of the UEL for 2026 to 2027 will continue to be set at £50,270.
So everything is Frozen!
In other words, all of the qualifying earnings levels and triggers are frozen for 2026/2027.
PAYadvice.UK 18/12/2025