Overview
- Reports suggest the Budget could cap the National Insurance saving on pension salary sacrifice at about £2,000 per employee per year.
- Estimates cited in coverage indicate the measure could raise roughly £2 billion annually for the Treasury.
- Financial planners stress the rumour concerns NI savings only, with pension contributions and tax relief continuing under existing rules.
- Business groups warn a cap would remove a key tool for managing costs and could affect workers near thresholds such as the £100,000 childcare and personal allowance cliff.
- Electric car salary-sacrifice arrangements are reported to remain in place through 2030, with government data showing about 680,000 drivers helped and roughly 40% of BEV owners acquiring vehicles via such schemes.