Question to the HM Treasury:
To ask Her Majesty’s Government what estimate they have made of the savings of reducing the annual allowance for pension contributions in defined benefit pension schemes to £25,000 a year.
The impacts of reducing the Annual Allowance from £40,000 a year would depend upon a number of factors including earnings growth and behavioural response to the policy change.
A costings note for the reduction of the Annual Allowance from £50,000 to £40,000 and the Lifetime Allowance from £1.5 million to £1.25 million was published at Autumn Statement 2012[1].
[1] This policy costings document was published alongside Autumn Statement 2012