Autumn Budget Update 2025: Impact to Employee Benefits
Corpad Employee Benefits – Summary Update
The Autumn Budget 2025 brings several important changes that will affect both employers and employees over the coming years. The most significant is the introduction of a £2,000 cap on National Insurance–efficient pension salary sacrifice from April 2029, alongside a continued freeze on income tax thresholds and increases to the National Living Wage.
These changes could place additional pressure on payroll budgets, pension planning and wider employee benefits — but there is also plenty of time to prepare and opportunities for employers to strengthen their reward strategy.
At Corpad, we are helping businesses understand:
- how the £2,000 salary sacrifice cap will impact take-home pay and employer NI costs,
- which employee groups are affected most,
- how to plan ahead of 2029,
- and how to use this period to improve communication, benefits and employee engagement.
We will continue to monitor all developments closely, including those yet to be finalised, and will keep our clients informed every step of the way.
To read the full Autumn Budget 2025 Newsletter, covering all changes and our detailed employer guidance, click here.