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Pensions Minister freezes auto-enrolment pension thresholds for 2026/27

The lower earnings limit of the qualifying earnings band will stay at £6,240 and the upper earnings limit will stay at £50,270.

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Pensions Minister freezes auto-enrolment pension thresholds for 2026/27
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Pensions Minister Torsten Bell, has today confirmed in a written statement that all automatic enrolment pension thresholds for 2026/27 will stay at their current levels. 

The automatic enrolment earnings trigger will remain at £10,000. 

The lower earnings limit of the qualifying earnings band will stay at £6,240 and the upper earnings limit will stay at £50,270.

Bell said the main focus of this year’s review was to keep things stable for employers and workers during ongoing work by the pensions commission, which is looking at how to improve retirement outcomes, especially for those on lower incomes. 

He added: “The Commission will examine why tomorrow’s pensioners are on track to be poorer than today’s and make recommendations for change.”

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Kelly Parsons, head of DC proposition at Broadstone, said: “The decision to maintain the current automatic enrolment earnings trigger and qualifying earnings band for another year is largely a formality and was widely expected.

“While stability and predictability for employers and savers are welcome, freezing these thresholds highlights a deeper challenge around retirement adequacy. 

“Ultimately, improving outcomes will require higher contributions over time, but that is not a straightforward fix.” 

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Parsons added: “Higher rates risk pushing lower earners to opt out altogether as households juggle competing financial pressures, while increases at the lower end of earnings often deliver only modest gains to pension pots.

“At the same time, holding the auto-enrolment thresholds steady has a quietly powerful effect, akin to fiscal drag in taxation. 

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“With the trigger remaining at £10,000 and the qualifying earnings band fixed between £6,240 and £50,270, rising wages mean more employees are brought into pension saving and contributions increase organically, even without changes to headline rates.”

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She said: “However, this passive mechanism also underlines the urgent need for a broader, more deliberate approach.

“Improving awareness of the impact of starting late, career breaks and periods of non-saving is just as important as contribution rates, particularly for younger and lower-paid workers.

“The forthcoming work of the pensions commission will therefore be crucial.”

She added: “A credible long-term plan is needed – one that balances gradual contribution increases with clearer policy intent across the different pillars of pension provision. 

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“Without that, we risk simply storing up larger problems for future retirees and the state.”

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