Rachel Reeves Credit: HM Treasury Flickr
A boring Spring Statement for pensions will be a “welcome change” for an industry already coping with a raft of tax changes and legislative reforms.
The statement – due to be unveiled by Chancellor Rachel Reeves later today (3 March) – has been widely predicted to be "boring" with few major announcements made as part of the government's shift to a single annual fiscal event.
Royal London director of policy Jamie Jenkins said: "The Spring Statement this year comes with the promise of being 'boring.' Given the recent history of fiscal events, one can easily get excited at the prospect of boredom.
"While we don't expect any big tax announcements, there will of course be keen interest in the Office for Budget Responsibility's outlook for the economy and government finances. Any signs of optimism could perhaps translate to households and businesses facing a less worrisome Budget later in the year."
He said: "For pension savers, an uneventful Autumn Budget would be a welcome change, and certainly they could do without another year of frenzied speculation about what could be announced.
"We already have a roadmap of tax changes ahead, with the inclusion of pensions for inheritance tax in 2027, an increase in the minimum pension age from 2028 and a reduction in salary sacrifice NI savings from 2029. And all that alongside seismic changes in the way the market operates through the provisions in the Pension Schemes Bill."
He added: "A 'boring' sequence of fiscal events this year will likely be welcomed by those concerned with saving for retirement."
Salary sacrifice
Despite expectations for major announcements in the Spring Statement being low, several industry figures have called on Reeves to review the salary sacrifice changes made in the Autumn Budget.
Yesterday, Baroness Ros Altmann urged the government to "press pause" on "premature and ill-conceived" legislation to implement the £2,000 cap on salary sacrifice.
Aptia UK president Malcolm Reynolds has also asked Reeves to reassess the changes to the salary sacrifice regime.
He said: "The Autumn Budget 2025 confirmed that, from April 2029, employee pension contributions made via salary sacrifice will be capped at £2,000 per year. This change will affect millions of savers by reducing take‑home pay advantages and potentially leading to smaller pension pots over the long term. It will also increase costs for employers through higher National Insurance contributions and may have knock‑on impacts on recruitment and retention.
"A review of this policy would be very welcome - particularly if the chancellor has more flexibility than previously expected, depending on the Office for Budget Responsibility's assessment."
