The Government has confirmed that the pensions auto-enrolment thresholds for the year beginning April 2026 will be frozen, as they have been for the past few years. Employers should check that they are using the correct thresholds and budget for increased contributions as more low-earning employees come into the scope of auto-enrolment.

This means that the thresholds for the year 2026/27 will be as follows:

• The automatic enrolment earnings trigger will remain at £10,000.
• The lower earnings limit of the qualifying earnings band will remain at £6,240.
• The upper earnings limit of the qualifying earnings band will remain at £50,270.

Whilst it's no change to the thresholds, there are a couple of action points for employers:

• Freezing the thresholds will mean that, as salaries rise, contributions will need to be paid for more low-earning employees; budgets will need to take account of this.
• Check that you are using the correct thresholds; some employers have been caught out by the fact that the lower threshold is no longer the same as the lower earnings limit for national insurance contributions, and have therefore been underpaying contributions.

If you need any help with rectifying problems with underpayment of contributions, please contact Doug Mullen or Lauren Broderick.