Government planning cuts to pensions lifetime allowance to maintain triple lock

Government planning cuts to pensions lifetime allowance to maintain triple lock

The government is reportedly planning reductions to the pensions lifetime allowance to recoup costs in this Autumn’s Budget.

The Telegraph reports that “well-placed sources” have said that the Treasury is considering plans to change the way pension contributions are taxed, following a huge increase in public spending during the pandemic.

One proposal is to cut the pensions lifetime allowance (LTA) from £1,073,100 to £800,000 in the next Budget.In this year’s Spring Budget, the Chancellor pledged to freeze the current LTA rate at £1.073m until April 2026.However, changes to pension tax relief could allow the government to maintain the pensions triple lock. […]

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