House of Lords Sub-Committee accepts NAPF pension tax plea

Date: 24th June 2009

The House of Lords Economic Affairs Sub-Committee on the Finance Bill has today (June 24th) suggested that the government's alterations to pension tax relief may need reviewing.

Campaigning from the National Association for Pension Funds (NAPF) for a government rethink on pension tax relief changes had preceded the Committee's findings.

The Committee highlighted the fact that the pensions system underwent significant changes only three years ago and that those new changes "undermined the simplicity [and] consistency" of the system.

It added that the new system risked a reduction in pension savings.

Nigel Peaple, NAPF policy director, said the Association was happy that the Committee had recognised the new system's flaws and hoped the government would take the criticism on board.

He said: "We are pleased that the House of Lords Sub-Committee has accepted the arguments we put to them about the damaging impact the Budget proposals will have on pensions saving.

"We hope the report will persuade the Government to rethink its proposals."