Treasury in 'major U-turn' over plans to fine DC savers who access pots

clock

The government has dropped plans to fine savers who access defined contribution (DC) pots under changes announced in the Budget but fail to alert all their previous pension providers.

In what has been described as a "major U-turn" the Treasury tabled an amendment Taxation of Pensions Bill on 24 November, relaxing some of the strictures introduced in October. The original proposal was to fine savers £300 if they accessed their money without contacting all providers within 31 days, then £60 a day up to a maximum of £3,000. This was to ensure that providers took account of the tax implications when flexible pension pots were accessed causing the annual tax relief allowance to be reduced from £40,000 a year to £10,000. The latest amendment extends the deadline for i...

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

Pensions: The overlooked asset in divorce settlements?

Pensions: The overlooked asset in divorce settlements?

Practical steps to narrow the divorce pension gap

Alistair Myles
clock 11 February 2026 • 5 min read
Legacy pensions tech creates 'enormous risk, costs too much and underserves clients'

Legacy pensions tech creates 'enormous risk, costs too much and underserves clients'

'Our industry is famous for thinking in decades, but customers will not wait that long'

Jonathan Hawkins
clock 10 February 2026 • 4 min read
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