Claire Trott: Why flat-rate tax relief is not a pensions 'quick fix'

'On the surface, flat-rate tax relief is very appealing'

clock • 4 min read

Claire Trott looks at the knock-on effects of introducing flat-rate pension tax relief and, while she says it would benefit low earners, it would not be a 'quick fix' many think it would be...

Pensions tax relief is so often seen as an easy way for the government to save money and in the last year with spending so high, the issue has been raised multiple times. The most recent report in early March by the Treasury Committee again called for not just a review but an urgent reform. It stated the following: "Given the regressive nature of the benefits accruing to individuals from the current arrangements on pension tax relief, especially those in the top earnings decile, the Chancellor should urgently reform the entire approach to pension tax relief." The government has pushed...

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

Pensions gender gap: A low-profile injustice that deserves more attention

Pensions gender gap: A low-profile injustice that deserves more attention

'Pensions are one of the few financial products where time is the single biggest driver of outcome'

Jessica Cook
clock 24 August 2026 • 4 min read
Advisers place focus on retirement support as providers lack 'meaningful' engagement

Advisers place focus on retirement support as providers lack 'meaningful' engagement

People’s Pension poll shows 54% of IFAs say providers struggle to create ‘meaningful’ engagement

Martin Richmond
clock 19 August 2026 • 3 min read
Pensioner poverty has risen for more than a decade, warns LCP

Pensioner poverty has risen for more than a decade, warns LCP

Single and divorced pensioners most affected and should be focus for future policy

Alex Levy
clock 18 August 2026 • 4 min read