Finance
UK budget pensions tax raid to raise over 3 billion pounds, FT reports
Published by Global Banking & Finance Review®
Posted on November 21, 2025
1 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on November 21, 2025
1 min readLast updated: January 20, 2026
The UK budget's pensions tax raid on salary sacrifice schemes is set to raise over 3 billion pounds, affecting businesses and pension contributions.
(Reuters) -British finance minister Rachel Reeves' budget tax raid on salary sacrifice schemes is set to raise 3 billion pounds to 4 billion pounds ($3.93 billion to $5.24 billion), hitting businesses and encouraging employers to cut pension payments to staff, the Financial Times reported on Friday.
Reeves is expected to need to raise tens of billions of pounds to stay on track to meet her fiscal targets in the November 26 annual budget.
($1 = 0.7632 pounds)
(Reporting by Mrinmay Dey in Bengaluru; Editing by Chris Reese)
A pension scheme is a financial arrangement designed to provide income during retirement. It involves contributions from employees and/or employers, which are invested to grow over time.
Salary sacrifice is an arrangement where an employee agrees to give up part of their salary in exchange for non-cash benefits, such as increased pension contributions or other perks.
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