Pensions annual allowance changes on the cards 'to fund NHS boost'

£38bn up for grabs

Hannah Godfrey
clock • 2 min read

Chancellor Philip Hammond is planning to raid the pensions of higher-rate taxpayers to fund a boost to the NHS, most likely through changes to the annual allowance and tapered annual allowance, according to a report.

This weekend the Daily Mail reported an unnamed senior government source said Hammond (pictured) had identified some £38bn in pension tax relief as "one of the last remaining pots we can raid". The source added Hammond was planning to target only "people who can afford to put tens of thousands of pounds into their schemes each year". The money will be used to fund Theresa May's planned £20bn-a-year boost to the NHS. May initially claimed the boost would be partially funded by a "Brexit dividend", after pledging to give the NHS the extra money by 2023 as a 70th "birthday present".  ...

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

Pension transfers and the FCA: A well-meaning intervention that risks falling short

Pension transfers and the FCA: A well-meaning intervention that risks falling short

'The secret is giving people the right information at the right time'

Rachel Vahey
clock 28 January 2026 • 4 min read
State pension deferrals: 42,000 who postponed took benefit in 2023/24

State pension deferrals: 42,000 who postponed took benefit in 2023/24

FoI request from provider Royal London

Jenna Brown
clock 28 January 2026 • 3 min read
SSAS: Practitioner-only and professional trustees – what's the difference?

SSAS: Practitioner-only and professional trustees – what's the difference?

'Robust governance and informed decision-making are critical'

Caitlin Southall
clock 27 January 2026 • 5 min read