Labour govt would cut pension tax relief to 'fund job creation'

clock

The Labour Party has confirmed its policy to restrict higher-rate pensions tax relief to fund job creation will be in its 2015 manifesto.

This comes after chief secretary to the Treasury Danny Alexander announced last week there will be no changes to pensions tax relief in this year's Budget. The party's compulsory jobs guarantee would be funded for the whole of the next Parliament, rather than just a year, Labour leader Ed Miliband said. Labour has previously voiced plans to restrict pensions tax relief for people earning over £150,000 per year to the same rate afforded to basic rate taxpayers to fund jobs. A bank bonus tax would fund the first year of the policy, while the restriction on higher-rate pensions tax re...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Govt moves to tackle gender pension gap with LPGS scheme changes

Govt moves to tackle gender pension gap with LPGS scheme changes

Reforms follow consultation on access and fairness in the Local Government Pension Scheme

Jonathan Stapleton
clock 03 February 2026 • 2 min read
Britain's pension ambition is rising - just as cash resilience slips

Britain's pension ambition is rising - just as cash resilience slips

'2026's 'pension resolution' wave is real. But so is the cash-cushion squeeze'

Phillip Wickenden
clock 02 February 2026 • 6 min read
Government again rejects Waspi compensation after review

Government again rejects Waspi compensation after review

DWP: Creation of compensation scheme would be ‘highly impractical’ and ‘time-consuming’

Martin Richmond
clock 29 January 2026 • 3 min read