News story

20th October 2002

Pensions Overhaul Must Not Be Back Door Tax Raising

Steve Webb MP, Liberal Democrat Shadow Work & Pensions Secretary, commenting on reports of Government plans to overhaul tax breaks on pensions, said:

“Abolishing the tax free lump sum does not make sense. It is the one benefit left for savers in the pensions system.

“At a time when pensions are being undermined left, right and centre and the Government is trying to encourage people to save, this move would be damaging.

Commenting on proposals to end tax relief for top earners, Steve Webb MP said:

“If the Government decides to press ahead with this, it must not just be a back door method of increasing revenue. Every penny saved from ending tax breaks should go into boosting pensions for people who do not have one.

“If it happens, the Government should use such a measure to spend cleverer.”

ENDS