Auto-enrolment thresholds frozen for 2025-26

In a written statement, the Pensions Minister, Torsten Bell, has confirmed that the automatic enrolment (AE) earnings trigger will remain at £10,000 for the 2025-26 financial year. This also includes the lower earnings limit of the qualifying earnings band, which will remain at £6,240, and the upper earnings limit remaining at £50,270.

Mr Bell said the main focus of this latest review was to ensure the continued stability of auto-enrolment for employers and individuals, writing "It is important that AE works for individuals, supporting those for whom it makes economic sense to save towards their pensions while also screening affordability for employers and taxpayers".

With upcoming changes to employer National Insurance Contributions (NICs), maintaining the level of AE earnings comes as no surprise. We believe it to be a missed opportunity to drive higher contributions that could secure better retirement outcomes for millions of workers. The government's decision puts onus on individuals to ensure they are saving enough for their future. While AE has transformed pension saving, those relying solely on minimum contributions may find themselves falling short of the retirement they desire.

What does this mean for UK employers?

Frozen auto-enrolment thresholds may present a reason to review your contribution and eligibility rules. This review could help you take a more holistic approach to supporting your staff with their retirement savings.

Speak to your Lockton Pension & Workplace Savings Consultant to discuss your options and gain guidance on when might be a good time to conduct a review.