Update from the Spring Budget

On 6 March 2024, Chancellor Jeremy Hunt delivered his Spring Budget, setting out the Government’s key commitments and objectives for the UK economy.

While 2023’s Budget contained significant changes to pension taxation, there were no such announcements this year. Instead, the main takeaway for pension schemes was a push to deliver better value for savers and increase investment in the UK economy.

The Chancellor announced new powers for The Pensions Regulator and the Financial Conduct Authority to assess pension schemes on overall returns rather than just costs. There will also be new requirements for Defined Contribution and Local Government schemes to declare how much they have invested in UK shares.

The consultation on the idea of “pots for life” (pension accounts you can take with you when you move employer) will continue, as part of ongoing efforts to make pensions simpler and more flexible.

Many of the headlines picked up on the reduction of employee National Insurance contributions from 10% to 8% (on top of the reduction from 12% announced in the Autumn Statement). This cut represents a further attempt to ease the cost-of-living pressures many are still facing. It could also present an opportunity for people to put a little more aside for their future – perhaps by increasing contributions to their pension.

For active members of the Defined Contribution Section of the Plan. As your pension contributions are paid by salary sacrifice, you don’t pay any National Insurance on them. The cut slightly reduces the value of this arrangement, because the charge you are avoiding is lower, but it is still to your advantage. If you would like to check how your pension is doing or consider paying a little bit more, please visit the Member Portal.