PensionBee shares its reaction to the measures announced in today’s Autumn Statement.
1. Bringing pensions into the scope of Inheritance Tax
Becky O’Connor, Director of Public Affairs at PensionBee commented: “As expected, the Chancellor has brought pensions into the scope of Inheritance Tax, from April 2027. This will be hugely disappointing to those who see this as a key benefit of pensions, knowing that any money they don’t use themselves can go to their beneficiaries tax-free. It is likely to mean that wealthier pension savers look for other places to invest.”
2. Increase in National Insurance rate for employers
Romi Savova, CEO at PensionBee commented: “An increase in the National Insurance rate for employers poses a direct challenge not only to business sustainability but also to the financial well-being of working people. For businesses, particularly small and medium-sized ones already navigating rising wage pressures, this added cost may threaten survival and force difficult choices.
Ultimately, these changes act as a tax on work, with a real potential to strain the labour market, slow economic growth and reduce wage growth and generous pension contributions. It’s a straightforward economic principle: burdens on business inevitably filter down, affecting workers, growth, and, in turn, the broader health of the economy.”
3. No further extension of frozen tax thresholds
Becky O’Connor, Director of Public Affairs at PensionBee commented: “With thresholds set to remain frozen until 2028, pensioners and other taxpayers alike will feel the impact of paying higher taxes despite only modest income increases. The confirmation of the unfreezing of thresholds provides hope for more equitable tax treatment in the future.”
4. Increase to Capital Gains Tax
Romi Savova, CEO at PensionBee commented: “Raising Capital Gains Tax with income tax rates risks undermining the health and competitiveness of the UK’s capital markets. As many UK pensions are invested in domestic equities, falling asset values driven by increased Capital Gains Tax could diminish pension wealth, ultimately affecting the financial security of future retirees.
“This hike appears contradictory to recent Government initiatives aimed at increasing pension investment in UK-based assets.
5. No update on the extension of Auto-Enrolment
Becky O’Connor, Director of Public Affairs at PensionBee commented: “Legislation enabling the extension of automatic enrolment was passed a year ago. However, we await the introduction of the key measures that would help to boost people’s pension pots.
A follow-up announcement on this is due and it’s disappointing to not see it mentioned today to give reassurance that savers’ retirement outcomes are being prioritised and to provide employers with clarity for planning purposes.”
