Question to the HM Treasury:

To ask the Chancellor of the Exchequer, if she will make an assessment of the potential merits of amending paragraph 1(b) of Schedule 29 to the Finance Act 2004 to ensure that people with enhanced protection are not limited in the amount of pension commencement lump sum they can obtain.

Paragraph 1(b) of Schedule 29 to the Finance Act 2004 provides for a pension commencement lump sum where all or part of a member’s lump sum allowance, and all or part of their lump sum and death benefit allowance, is available.

Those with enhanced protection against pension tax charges are entitled to the same amount of pension commencement lump sum they would have expected to receive prior to 6 April 2023. This enables them to receive up to £375,000 if they have sufficient available lump sum allowance.

The government has no plans to enable those with enhanced protection, or any other protection, to access additional tax-free lump sums where they have already taken the maximum amount. This maintains members’ expectations in respect of their tax-free lump sums.