The Government has confirmed that the annual earnings trigger for an employer to place someone into a pension will stay frozen at £10,000 in 2025-26.

In a written statement, pensions minister Torsten Bell announced that automatic enrolment thresholds for 2025-26 will remain at their 2024-25 levels. The statement read: "It is important that AE (automatic enrolment) works for individuals, supporting those for whom it makes economic sense to save towards their pensions whilst also ensuring affordability for employers and taxpayers."

Mr Bell expressed the Government's commitment to exploring long-term measures to enhance pension outcomes. Financial planner Ian Futcher from Quilter commented: "Torsten Bell has unsurprisingly decided to maintain the automatic enrolment thresholds given the upcoming changes to employer national insurance contributions and the continued financial strain many people are suffering."

He added: "While freezing the thresholds provides stability for both employers and employees, it is still a missed opportunity to drive higher contributions that could secure better retirement outcomes for millions of workers.

"The Government’s decision puts the onus on individuals to ensure they’re 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."