Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment he has made of the potential merits of amending legislation on pension commencement lump sums in order to allow for the option of a minimum regular monetary sum as tax free, as an alternative to the 25 per cent tax free portion of the total pension pot.

The Government keeps all aspects of the tax system under review, as part of the annual Budget process, and in the context of the wider public finances. In 2015, pension freedoms were introduced to give individuals the choice as to how to access their own pension savings including full pot withdrawal, purchasing an annuity, flexi-access drawdown or taking an uncrystallised funds pension lump sum. In the five years since pension freedoms were introduced, over £45bn has been accessed by over 1.8 million individuals. The Government believes it is right that individuals are trusted to choose how to access their pension income and provides a range of options for them to do so.