Labour pledges to cut lifetime and annual allowances

clock

Labour will cap the pensions lifetime allowance at £1m and restrict the annual allowance to £30,000 to help fund a £2.7m reduction in tuition fees if elected, it has announced.

Disclosing its fourth election pledge on 27 February, Labour also confirmed it would reduce the tax relief available to additional rate taxpayers to 20%. The tax changes would pay for a reduction in the tuition fees cap from £9,000 to £6,000 and an increase in student maintenance grants, Labour said. Party leader Ed Miliband said: "Britain must not penalise the young, if we're going to prosper in the future. Let me say to Britain's young people: I made you a promise on tuition fees. I will keep my promise." Critics said the move would harm middle income workers and suggested furthe...

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 Tax Planning

How charitable giving could help mitigate the IHT on pensions impact

How charitable giving could help mitigate the IHT on pensions impact

Castlefield adviser unpacks what the IHT on pensions changes mean for charitable gifting

Isabel Baxter
clock 27 October 2025 • 3 min read
Reeves eyes income tax rise in Autumn Budget – report

Reeves eyes income tax rise in Autumn Budget – report

Would break Labour’s manifesto pledge

Isabel Baxter
clock 24 October 2025 • 2 min read
Demand for estate planning advice surges as IHT exposure set to triple

Demand for estate planning advice surges as IHT exposure set to triple

Advisers prepare for IHT reforms

Isabel Baxter
clock 21 October 2025 • 2 min read