Millions of British workers face a threat to a significant tax benefit as the chancellor’s announced changes come into force.

Last year, Rachel Reeves announced that pension contributions made through national insurance savings would be capped at £2,000.

Research by Standard Life shows 40% of companies plan to end salary sacrifice schemes, raising fears workers will pay more in national insurance.

How salary sacrifice works

These schemes let workers give up part of their salary to receive benefits like pension contributions, which reduces their tax and national insurance bills.

But under the chancellor’s plans, national insurance relief on these schemes will be capped at £2,000 from April 2029.

The policy is expected to bring in £4.7 billion for the Treasury, although companies are already adapting to the changes.

Businesses already acting to scrap schemes

The poll found:

39% of companies plan to ditch salary sacrifice schemes

Around 40% have already chosen to eliminate them after the Autumn Statement

This could leave many workers in a worse financial situation, even before the changes officially take effect.

Workers face potential financial losses

Analysis shows workers could face higher annual national insurance bills:

A person earning £50,000 putting in 5% could pay an extra £40 annually

Someone on £75,000 might have to pay £35 extra

Companies also face higher costs,