Autumn Budget 2025: Investment, pre-97 indexation and State Pension up-rating welcome

Growth and investment

“Pensions UK welcomes the move to reduce the tax charge on DB surplus funds being used to benefit pension members directly. Provided robust safeguards are in place to protect scheme funding and member benefits, we support measures that enable trustees and employers to use surplus to benefit members but emphasise the need for clear regulatory guidance and member consultation.

“Stamp duty relief for companies choosing to list in the UK, and the announcement of new infrastructure projects and funding for health centres and technology could provide pension schemes with a greater array of domestic assets in which to invest. Pensions UK has long argued for greater fiscal incentives to encourage schemes to invest in productive assets to help grow the UK economy.

“The British Business Bank’s VentureLink initiative is also very welcome.”

Pre-97 indexation

“The decision to inflation index pension benefits accrued before 1997 in the Pension Protection Fund and the Financial Assurance Scheme is a boost to impacted pensioners. Those older pension entitlements will now rise annually with inflation, protecting thousands of members. This is a significant policy change because increasing pension payments in line with inflation means their real value doesn’t erode over time and addresses fairness concerns for people affected by scheme failures. The PPF is unquestionably well-capitalised and we’re reassured the PPF has said it can fund the move. But Pensions UK warns against the cost of this policy change being applied to DB pension schemes via the PPF levy, should the funding position of the PPF deteriorate in the future.”

State Pension

“Pensions UK welcomes the triple lock uprating, increasing the State Pension by 4.8%. Committing to the triple lock in this parliament, to ensure pension incomes keep pace with inflation, is important for those whose sole income is the State Pension. The State Pension is an important building block for additional saving to reach a higher standard of living in retirement.

“Pensions UK's Retirement Living Standards provide a yardstick people can use to consider whether they are saving enough to meet their retirement goals.”

Mark Smith, Head of Media Relations
020 7601 1726 | [email protected]

Cali Sullivan, Senior PR Manager
020 7601 1761 | [email protected]