Since the Chancellor’s Budget, there has been a sharp rise in inbound enquiries from employers worried about the rising costs of employing staff, with many seeking practical advice on how to mitigate these new expenses. Hearing these concerns, Penfold, the digital pension provider, has published a new guide on managing the increase in National Insurance Contributions (NICs).
Designed to cut through the confusion and offer clear, actionable insights for employers and advisers on how salary sacrifice pension contributions can reduce these new costs, the Penfold guide provides businesses with market statistics, case studies from businesses already benefiting from salary sacrifice, and simple explanations of how salary sacrifice works in practice.
The goal is to provide a flagship resource that demystifies salary sacrifice pensions, helping businesses make informed decisions at a time of financial pressure.
“Since the Budget, we’ve seen an unprecedented level of inbound interest from employers who are now facing much higher employment costs. Salary sacrifice pensions have gone from being a ‘nice-to-have’ to a strategic priority,” said Chris Eastwood, founder and CEO, Penfold.
Employer interest hits record highs
Penfold’s latest data highlights the scale of this shift:
- Employer enquiries surged by 175 per cent year-on-year (Q1 2025 vs Q1 2024).
- Interest in switching to Penfold’s salary sacrifice pension solution jumped by 800 per cent year-on-year, with a 688 per cent increase since the last quarter.
- Contributions via salary sacrifice grew by 160 per cent year-on-year and 53 per cent quarter-on-quarter, marking the sharpest quarterly growth since early 2022.
“We’ve onboarded more employers using salary sacrifice in Q1 2025 than in the whole of 2023 combined. This isn’t just curiosity – businesses are taking decisive action to protect their bottom line,” added Eastwood.
Salary sacrifice trends
The sharp increase in enquiries to Penfold echoes broader changes in the market. According to the CIPD 85 per cent of very large employers and 61 per cent of large companies now offer salary sacrifice pensions and 41 per cent of SMEs are offering the scheme – figures that are expected to rise as more businesses look for ways to manage employment costs.
Eastwood concludes, “With National Insurance increases now a reality, businesses of all sizes are recognising the value of salary sacrifice. Our guide gives them the clarity they’ve been asking for.”
