The consultation into pensions tax relief has cost the Treasury £1.5 billion in the form of additional pension tax relief, according to leading SIPP provider AJ Bell. Pension savers have poured billions of pounds into pensions in fear of pension tax relief being curtailed or abolished in the forthcoming budget.
Andy Bell, chief executive of AJ Bell, comments:
“The Government’s plan to reduce the cost of pension tax relief could have backfired spectacularly. Far from saving money, the uncertainty created by the consultation and scare stories from former ministers has led to a surge in pension contributions and there will be a heavy cost to this for the Treasury.”
“This re-affirms my long held view that trusting politicians to make significant policy decisions on pensions tax relief is like trusting a troop of foxes to babysit a brood of chickens.”
“The pension saving public would be better served by an independent Pension Commission with a mandate to manage UK pension policy and provide certainty and confidence to savers.”