Webb accuses Chancellor of 'daylight robbery' over pension tax reforms

Report calls for stability and simplicity

Former pensions minister Steve Webb has accused the Chancellor of orchestrating a 'daylight robbery' with his proposed options to reform pensions tax relief, which would "steal billions of pounds in tax revenues from the next generationæ.

In a report out today, Webb (pictured), now policy director at Royal London, warned against replacing the current system with either a pension ISA or a low flat-rate of tax relief for all. He also warned it would be a "grave mistake" to cut the financial support available for pension saving, as he called for any new system to provide stability and simplicity. Currently pension savers are given tax relief at point of saving and during accumulation and they are taxed when they start withdrawing funds (EET). The Treasury has been consulting on new options for awarding pensions tax rel...