Much attention has been given recently to the government’s continued freeze on personal tax thresholds. However, there are other frozen thresholds that are equally important but receive far less attention. Automatic enrolment pension thresholds have also remained largely unchanged for several years. As wages have risen over time, this freeze is having a growing impact on how much people are saving into workplace pensions. A major success for workplace pensions Automatic enrolment is widely regarded as one of the most successful pension policy changes of the past decade. Introduced in 2012, the system requires employers to automatically enrol eligible employees into a workplace pension scheme and make contributions alongside the employee. The policy began under the previous Labour government and was implemented by the Conservative government that followed. Since then, participation in workplace pensions has increased significantly. Government data shows that more than 22 million people are now saving into workplace pensions, an increase of over 10 million since automatic enrolment was first introduced. How the automatic enrolment thresholds work To be automatically enrolled into a workplace pension, workers must currently: be aged between 22 and State Pension age earn at least £10,000 per year from a single employer work in the UK Employees who earn less than £10,000 can still choose to opt in and receive employer contributions. Once a worker meets the automatic enrolment threshold, pension contributions are calculated on a band of qualifying earnings rather than total salary. For the 2025/26 and 2026/27 tax years, the qualifying earnings band remains: £6,240 – lower limit £50,270 – upper limit The £10,000 earnings trigger has remained unchanged since 2014/15, while the lower and upper limits of the earnings band have also remained frozen in recent years. Earnings have risen but thresholds have not Since automatic enrolment was introduced in 2012, average weekly earnings in the UK have increased significantly. Data from the Office for National Statistics suggests that nominal average earnings have risen by roughly 60% over that period. If automatic enrolment thresholds had increased in line with earnings growth, the entry threshold today might be closer to £13,000, with the qualifying earnings band stretching to somewhere in the region of £8,900 to £68,000. Instead, the current thresholds mean that the range of earnings on which mandatory pension contributions are calculated has effectively shrunk in real terms. What this means for higher earners One consequence of the frozen thresholds is that a smaller proportion of higher salaries now falls within the qualifying earnings band used for automatic enrolment contributions. When the scheme began in 2012, the upper earnings limit represented a much larger proportion of average earnings than it does today. As wages have grown but the limits have remained largely static, automatic enrolment contributions now cover a smaller share of higher incomes. The government’s position has been that higher earners are more likely to make additional personal pension contributions outside the automatic enrolment system. For many individuals, this means that relying solely on automatic enrolment contributions may not be enough to build the retirement savings they need. Planning ahead for retirement Automatic enrolment has significantly improved pension participation across the UK. However, the frozen thresholds mean that both employees and employers may need to think more carefully about long-term retirement planning. For higher earners in particular, it may be worth reviewing whether additional pension contributions or other retirement savings strategies are appropriate. Need advice on pensions or retirement planning? Understanding how workplace pensions, tax relief and contribution limits interact can be difficult. At Inglis Accountancy, we help individuals and business owners understand their pension options and make informed decisions about long-term financial planning. If you would like advice on workplace pensions, retirement planning or tax-efficient savings, get in touch on 01904 787 973 or book a call with our team .

The UK government has announced an increase in grants available for installing electric vehicle (EV) charge points, with eligible households and businesses now able to receive up to £500 towards installation costs . The support is aimed primarily at renters, flat owners, households without driveways and small businesses , helping make EV charging more accessible for people who cannot easily install a charger at home. The increase represents around a 40% uplift in the maximum grant , with the scheme expected to run until March 2027. According to the government, the funding could cover close to half the cost of a typical charge point installation . Lower charging costs for EV drivers One of the main benefits of installing a home or workplace charger is access to cheaper electricity tariffs. Charging at home can significantly reduce running costs compared with petrol or diesel vehicles. The government says some EV drivers may be able to power their vehicle for as little as 2p per mile when charging on cheaper domestic tariffs, particularly overnight EV rates. While costs vary depending on electricity prices and the efficiency of the vehicle, official estimates suggest that drivers could save up to £1,400 a year in running costs compared with a similar petrol car when charging at home. Addressing barriers to EV adoption The changes form part of the government’s broader strategy to encourage more drivers to switch to electric vehicles. Two of the most common concerns among drivers considering an EV are the upfront costs and access to reliable charging , particularly for people living in flats or homes without private driveways. By increasing support for charge point installation, the government hopes to make EV ownership more practical for a wider range of households and businesses. The move also sits alongside wider policies designed to support the transition to electric vehicles, including financial incentives to reduce the purchase cost of EVs and continued investment in the UK’s public charging network. Thinking about installing an EV charger for your business? If you run a business and are considering installing EV charging points for staff or company vehicles, it is worth understanding how grants and tax reliefs may apply. At Inglis , we help business owners make sense of government incentives and ensure they are making the most of available tax reliefs and allowances. If you would like advice on EV charging installations, capital allowances, or other ways to improve the efficiency of your business, call us on 01904 787 973 or book a call with our team .