Update on the Spring Budget

On 6 March 2024, Chancellor Jeremy Hunt delivered his Spring Budget, setting out the Government’s key commitments and objectives for the UK economy.

While 2023’s Budget contained significant changes to pension taxation, there were no such announcements this year. Instead, the main takeaway for pension schemes was a push to deliver better value for savers and increase investment in the UK economy.

The Chancellor announced new powers for The Pensions Regulator and the Financial Conduct Authority to assess pension schemes on overall returns rather than just costs. There will also be new requirements for Defined Contribution and Local Government schemes to declare how much they have invested in UK shares.

The consultation on the idea of “pots for life” (pension accounts you can take with you when you move employer) will continue, as part of ongoing efforts to make pensions simpler and more flexible.

Many of the headlines picked up on the reduction of employee National Insurance contributions from 10% to 8% (on top of the reduction from 12% announced in the Autumn Statement). This cut represents a further attempt to ease the cost-of-living pressures many are still facing. It could also present an opportunity for people to put a little more aside for their future – perhaps by increasing contributions to their pension.

If you would like to check how your pension is doing or consider paying a little bit more, you can log into your Personal Account at MyPru.