Pension tax relief changes could lead to 'dark place', warns Steve Webb

Helen Morrissey
clock •

Further changes to pensions tax relief could lead the industry "into a very dark place", according to ex-pensions minister Steve Webb.

Speaking at Pensions & Benefits UK, Webb branded rumours that the lifetime allowance could be further reduced to £1m as "ridiculous" and said potential changes to the annual allowance look "messy". "The idea is that if I earned between £150,000 and £210,000 then my annual allowance could fall from £40,000 to £10,000," he said. "Most people will only know this once they have filled out their tax return and so you could end up facing a tax charge in the tax year 2017/2018 based on your earnings in the previous year. "You can't gauge how much you may have to pay the following year bec...

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

AJ Bell warns Budget could 'exacerbate' 76% pension lump sum withdrawal rate

AJ Bell warns Budget could 'exacerbate' 76% pension lump sum withdrawal rate

AJ Bell has called on chancellor John Healey to commit to a pension tax lock

clock 06 October 2026 • 2 min read
Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

Rachel Vahey: Pension savers need stability, not another panic-fuelled tax raid

'Real-world consequences of allowing pension tax speculation to run unchecked'

Rachel Vahey
clock 05 October 2026 • 3 min read
Triple lock played 'important role' but it would 'always need to end'

Triple lock played 'important role' but it would 'always need to end'

Pensions industry reacts to triple lock change

Holly Roach
clock 30 September 2026 • 4 min read