Commons Sense

House of Commons · Ministers' Questions

Occupational Pensions: Tax Relief

Tuesday 3 September 2024 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • The Government encourage pension tax relief to ensure decent retirement incomes.
  • The Government have launched a pensions review to unlock billions for the UK economy.
  • The Chancellor aims to ensure working people are better off in the upcoming Budget.

Topics (select to filter)

Questions & Answers

Q1 Peter Bedford Con Mid Leicestershire
Taxation
Context

The question arises from the need to assess whether tax relief levels for pension contributions are adequate. This is important for encouraging savings and ensuring decent retirement incomes.

Question

What assessment she has made of the adequacy of the level of tax relief for occupational pension contributions?

Answer from Rachel Reeves

The Government encourage savings to ensure decent incomes in retirement through pension tax relief. There is strong cross-party support since 2005, resulting in 11 million more people saving. The Government have launched a pensions review which will unlock billions for the UK economy and increase pension pots by £11,000.

Partly answered

Not addressed: The adequacy of tax relief levels is not directly assessed.

How: I Welcome Strong Cross-Party Support, Launching A Pensions Review

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Q2 Peter Bedford Con Mid Leicestershire
Benefits & Welfare
Context

Concerns arise over the potential reduction of tax-free drawdown and tax relief on pension contributions, potentially leading to more pensioner poverty.

Question

Do the Government recognise the importance of workers' saving for their later years? Do they recognise that any moves to reduce the 25% tax-free drawdown or reductions in tax relief on pension contributions would be a disincentive and lead to more pensioner poverty?

Answer from Rachel Reeves

For many people who work hard and save for retirement, the money is not enough. Billions of pounds could be unlocked in the UK economy through reforms that could increase pension pots by £11,000. The review aims to ensure a good deal for pensioners and a decent return on investment.

Partly answered

Not addressed: The potential negative impacts from reductions are not directly addressed.

How: Unlocking Billions Of Pounds, Increasing Pension Pots By £11,000

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Q3 Nigel Huddleston Con Droitwich and Evesham
Taxation Benefits & Welfare
Context

During the election, Labour promised not to increase taxes on working people. Now, questions arise about whether they will confirm no tax hikes on pensions in the upcoming Budget.

Question

Does it now recognise that working people have pensions too and can the Chancellor give those saving for their future peace of mind by confirming that the Government will not increase taxes on pensions in the upcoming Budget?

Answer from Rachel Reeves

I am determined to ensure working people are better off. The last Government left a high tax burden, and this Budget aims to fix economic foundations after their mess, rebuild Britain, and make working people better off.

Not addressed: The confirmation of no tax hikes on pensions is not provided.

How: Ensuring Working People Are Better Off, Fixing Economic Foundations

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