What's happened
Chancellor Jeremy Hunt abolishes the lifetime cap on tax-free pension savings
Why it matters
The decision to abolish the lifetime cap on tax-free pension savings has been criticised as a handout to the wealthiest people in the country, with the IFS saying it creates an unjustified extra inheritance tax loophole for high earners that should be closed as soon as possible.
What the papers say
The sources are in agreement that the decision to abolish the lifetime cap on tax-free pension savings has been criticised as a handout to the wealthiest people in the country, with Labour vowing to reverse the policy if they win the general election. The IFS has also criticised the decision, saying it creates an unjustified extra inheritance tax loophole for high earners that should be closed as soon as possible.
How we got here
Previously, the lifetime cap on tax-free pension savings was set at £1.07m, with anything over this amount subject to a tax charge of up to 55%. The decision to abolish the cap has been made in a bid to encourage experienced NHS consultants to work longer.
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Jeremy Richard Streynsham Hunt is a British politician serving as Member of Parliament for South West Surrey since 2005. A member of the Conservative Party, he served in the Cabinet from 2010 to 2019, most recently as Foreign Secretary from 2018 to 2019.
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Sir Keir Rodney Starmer KCB QC MP is a British politician and former lawyer who has served as Leader of the Labour Party and Leader of the Opposition since 2020. He has been Member of Parliament for Holborn and St Pancras since 2015.
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The Labour Party is a centre-left political party in the United Kingdom that has been described as an alliance of social democrats, democratic socialists and trade unionists.