7 Days is a weekly round up of developments in pensions, normally published on Monday afternoons. We collate this information from key industry sources, such as the DWP, HMRC and TPR.

In this 7 Days

Autumn Budget 2025

The Autumn Budget was delivered by the Chancellor on 26 November 2025. Key pension-related developments include:

  • from 6 April 2029, pensions salary sacrifice contributions will be capped at £2,000
  • from April 2027, “well-funded” DB schemes will be able to make payments out of surplus directly to members who have reached NMPA, provided scheme rules and trustees permit it, and
  • from January 2027, pre-1997 pensions in the PPF and FAS will benefit from CPI-linked increases, capped at 2.5% a year. This change is designed to help benefits keep pace with inflation, but only where such benefits were provided under the rules of the original scheme in question.

The Government has also provided further practical details on its proposals to include most unused pension funds and death benefits in the value of a person’s estate for IHT purposes from 6 April 2027.

Please see our Alert for more details.

Pensions schemes newsletter 175

On 27 November 2025, HMRC published its latest pensions schemes newsletter. The newsletter summarises the pensions-related developments announced at the Autumn 2025 budget and confirms that:

  • HMRC will engage with the industry and employers on the design and operability of the salary sacrifice cap and will legislate in a National Insurance Bill “in due course”, and
  • the Government will take a regulation-making power to allow HMRC to legislate for CDC schemes “more efficiently”.

TPR pledge to combat pension scams

On 27 November 2025, TPR published a blog announcing its new Pledge campaign. Trustees have a “crucial role” to play in protecting their members by making the Pledge to combat pension scams. TPR’s new campaign calls on those that have not engaged with the Pledge to do so now, and for those that already have, to go one step further and self-certify that they are turning their commitment into action.

TPR plans to work with the industry next year to improve and promote the Pledge.

TPR speech on delivering a modern regulatory system

Nausicaa Delfas, TPR’s Chief Executive, delivered a speech on 26 November 2025 on delivering a modern regulatory system that drives better outcomes for savers. TPR:

  • aims to hold structured roundtables in the next couple of months to discuss its “vision for trusteeship”
  • expects to launch a joint consultation with the FCA on the implementation of the VFM provisions in the Pension Schemes Bill “early in the new year”
  • plans to undertake a market engagement exercise this year to understand more about the limitations, barriers, and enablers to pensions schemes investing in a range of opportunities and investment vehicles with an emphasis on opportunities in the UK
  • aims to engage with the market on decumulation solutions over the course of 2026, and
  • is reviewing how schemes can provide data to it in a way that limits the wider reporting burden.

PDP supplementary guidance on benefit illustrations

PDP has published guidance supporting the industry with some of practical issues relating to benefit illustrations, including where there are multiple benefit illustrations or where part of the value data is unavailable, and includes some useful high-level examples. The guidance supplements (but, at this stage, is not part of) the data standards and will become part of the compulsory framework at the “next available opportunity”.

PASA Data (Use and Access) Act 2025 guidance

On 30 November 2025, PASA published guidance on the Data (Use and Access) Act 2025 for pension schemes, providing a “practical breakdown” of the legislation and the guidance from the ICO. The paper outlines core areas that schemes need to understand, including automated decision making, digital verification services, recognised legitimate interests, subject access requests and data protection complaints.

Pensions Minister letter on discretionary payments

A letter was published by the WPC on 26 November 2025 from the Pensions Minister, following the WPC’s evidence session on discretionary payments and member representation in DB schemes. The letter confirms that:

  • the DWP is working with TPR on how to support schemes considering using the surplus release powers in the Pension Schemes Bill
  • TPR intends to release further guidance on the release of surplus by the end of 2027, and
  • the DWP aims to consult on standards of governance and trusteeship before “the end of this year”.