Automatic Enrolment: Earnings Trigger and Qualifying Earnings Band Review 2025-26

Torsten Bell Excerpts

Tuesday 21st January 2025 Written Statements

[The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)]

Automatic enrolment into workplace pensions has transformed workplace pension saving for millions of workers. The Government are committed to looking at long-term steps we can take to further improve pension outcomes.

I have completed this year’s annual statutory review of the thresholds within automatic enrolment. The main focus of this year’s annual statutory review of the AE earnings trigger and lower and upper earnings limits of the qualifying earnings band—the AE thresholds—has been to ensure the continued stability of AE for employers and individuals. It is important that AE works for individuals, supporting those for whom it makes economic sense to save towards their pensions while also ensuring affordability for employers and taxpayers.

The thresholds review has therefore concluded that all AE thresholds for 2025-26 will be maintained at their 2024-25 levels.

The 2025-26 annual thresholds

The automatic enrolment earnings trigger will remain at £10,000.

The lower earnings limit of the qualifying earnings band will remain at £6,240.

The upper earnings limit of the qualifying earnings band will remain at £50,270.

The analysis supporting the review will be published and a copy will be placed in the Library of the House. It will be available on the www.gov.uk website, following publication.

[HCWS376]