Pensions news in 2025
21 stories, newest first.
- December 2025
Capita due to take over administration of the Civil Service Pension Scheme
Capita began administering the Civil Service Pension Scheme in December 2025 under a contract awarded in 2023, and a backlog of 120,000 cases has left some members waiting for payments.
Virgin Money investments and pension business sold to Octopus Money
Virgin Money's investments and pension business was sold to Octopus Money on 1 December 2025, a sale separate from the transfer of Virgin Money's banking business to Nationwide.
- November 2025
Autumn Budget 2025 announces NICs measures
The Autumn Budget on 26 November 2025 extended the freeze on most National Insurance limits to 2031, capped salary sacrifice relief from 2029 and removed Class 2 voluntary contributions from abroad.
Salary sacrifice pension contributions above £2,000 to face National Insurance from April 2029
The government will cap the amount of salary sacrifice pension contributions exempt from National Insurance at £2,000 a year from April 2029, under changes announced at Autumn Budget 2025.
Work and Pensions Committee launches inquiry on pre-pension income gap support
The Work and Pensions Committee has opened an inquiry into support for people below State Pension age, as the pension age rises from 66 to 67 from April, with evidence due by 19 December 2025.
Salary sacrifice pension contributions NICs exemption capped from April 2029
The Government Actuary has set out the effect of the November 2025 Budget measure that caps the National Insurance exemption for salary sacrifice pension contributions at £2,000 a year from April 2029.
- October 2025
Scottish Government submits evidence to independent State Pension age review
The Scottish Government has sent evidence to the independent State Pension age review, citing lower life expectancy in Scotland, pensioner poverty, demographic change and unpaid compensation for 1950s-born women.
Share of pension pots accessed with advice falls to lowest level in six years
FCA retirement income data shows only 31% of the 962,000 pension plans first accessed in 2024-25 were taken after regulated advice, the sixth consecutive annual fall.
- September 2025
Industry alert on unauthorised access to pension scheme members' accounts
The Pension Scams Action Group has issued an industry alert warning trustees and administrators about unauthorised access to pension scheme members' accounts through hacking and impersonation.
- July 2025
MPs call for national strategy to tackle pensioner poverty
The Work and Pensions Committee has called for a UK-wide cross-government strategy on ageing, a Pension Credit take-up strategy for England by the end of 2025 and a Government-set minimum retirement income.
Government abandons PSA-led model for Inheritance Tax on pensions
The government has dropped plans to make pension scheme administrators responsible for reporting and paying Inheritance Tax on unused pension funds, keeping that duty with personal representatives from April 2027.
Government publishes consultation outcome confirming personal representatives liable for IHT on pensions from April 2027
The government has confirmed that personal representatives, not pension scheme administrators, will report and pay inheritance tax on unused pension funds and death benefits from 6 April 2027.
Government relaunches the Pensions Commission
The Government has relaunched the Pensions Commission to examine how future pension savings could be boosted, as MPs separately call for a national strategy on pensioner poverty.
- June 2025
Pension Schemes Bill 2024-25 introduced in Parliament
The Pension Schemes Bill 2024-25 was introduced in Parliament on 5 June 2025, with 12 policies covering local government funds, defined benefit and defined contribution schemes, and the Pensions Ombudsman.
- May 2025
Pensions Investment Review Final Report published with consultation responses
The Pensions Investment Review's Final Report sets out reforms to defined contribution workplace pensions and the Local Government Pension Scheme in England and Wales, with legislation planned in a forthcoming Pension Schemes Bill.
Pensions Investment Review final report published
The government published the final report of its Pensions Investment Review on 27 May 2025, setting out reforms to be taken forward in the Pension Schemes Bill 2024-25.
- April 2025
HMRC to end overtaxing of first pension withdrawals from April 2025
HMRC has changed how tax codes are applied to new private pension withdrawals from April 2025, aiming to stop savers being overtaxed on their first payments.
State pension to rise by 4.1% in April 2025
The state pension rises by 4.1% in April 2025 after July earnings growth was revised up, taking the full new state pension to £230.30 a week and £11,975 a year.
- March 2025
First participant connects to pensions dashboards ecosystem
The first participant connected to the pensions dashboards ecosystem in March 2025, with 700 providers and schemes connected by December 2025, covering over 60 million workplace and personal pension records.
- February 2025
IFS report warns small pension pots risk being lost or eroded by charges
The Institute for Fiscal Studies has warned that millions of small deferred pension pots risk being lost or eroded by charges, and has recommended automatic consolidation of pots under £1,000.
Which? responds to FCA Targeted Support pensions consultation opposing the proposals
Which? has told the Financial Conduct Authority it cannot support the regulator's proposed Targeted Support regime for pensions, citing three concerns and making three recommendations.