Pension tax consultation 'costs Treasury £1.5bn' in extra relief

Additional contributions have poured into pensions

Jenna Towler
clock • 4 min read

People scrambling to make additional pension contributions ahead of planned changes to tax relief rules have left the Treasury with an additional £1.5bn bill, according to AJ Bell.

The platform and self-invested personal pension provider said the government will now hand out an extra £1.5bn in additional pension tax relief despite scrapping its plans. On Saturday, it was widely reported Chancellor George Osborne had abandoned plans to overhaul pension tax relief rules. He used his July Budget to launch a consultation on the issue and it was predicted he would use his upcoming 16 March speech to announce his intentions. However, Treasury sources said over the weekend it was "not the right time" for widespread changes. Division among Tory MPs was reported in natio...

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