Key facts
- Chancellor Rachel Reeves announced a cap on salary sacrifice pension contributions.
- The cap limits contributions to £2,000.
- This policy is expected to negatively impact the retirement savings of almost three million workers.
The UK government's Autumn Budget introduced a cap on salary sacrifice pension schemes. This policy aims to limit the tax benefits associated with these schemes, but critics argue it will disproportionately affect lower and middle-income earners by reducing their potential retirement savings.