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

MoneyHelper pension dashboard expected to launch in 2027/28

MoneyHelper pension dashboard expected to launch in 2027/28

Maps CEO says ‘significant’ progress has been made since schemes began connecting to ecosystem

Martin Richmond
clock 21 May 2026 • 2 min read
Up to 15 million not saving enough for retirement, Pensions Commission warns

Up to 15 million not saving enough for retirement, Pensions Commission warns

Report looks at the state of retirement saving in the UK

Holly Roach
clock 19 May 2026 • 3 min read
Standard Life extends Sharia proposition with lifestyle strategy launch

Standard Life extends Sharia proposition with lifestyle strategy launch

Move comes in partnership with HSBC Asset Management and Franklin Templeton

Jonathan Stapleton
clock 19 May 2026 • 3 min read