No major pension changes announced in the Spring Statement

Apr 3, 2025

Chancellor of the Exchequer, Rachel Reeves, delivered the Spring Statement on 26 March 2025. There were no major updates on pension policy or tax rules.

Many had expected updates on:

Defined Benefit (DB) scheme surplus rules
The next phase of the Pension Investment Review
The State Pension underpayment review

These were not addressed. However, Reeves said the government is focused on growing the economy by reforming pensions, creating a National Wealth Fund, and cutting red tape.

The pension ‘triple lock’ is a rule that increases the UK State Pension each year by the highest of either inflation, average earnings growth, or 2.5%. Some pensions industry commentators have warned that freezing the tax-free personal allowance until 2028 - announced in the Autumn Budget 2024 - may mean some people have to pay income tax on their State Pension.

The Government is expected to publish the first draft of the Pension Schemes Bill is soon. It aims to improve how pension schemes operate.

To keep up to date with news about your pension, check the Latest news page regularly.

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Each of Railpen Limited (registered in England and Wales No. 2315380) and Railway Pension Investments Limited (RPIL) (Registered in England and Wales No. 1491097) is a wholly owned subsidiary of Railways Pension Trustee Company Limited (Registered in England and Wales No. 2934539). Registered office for each company: 100 Liverpool Street, London EC2M 2AT. RPIL is authorised and regulated by the Financial Conduct Authority for some of its activities. The administration of occupational pension schemes is not a regulated activity. Full details about the extent of RPIL's authorisation and regulation by the Financial Conduct Authority are available from us on request.