Tom McPhail, Head of Pensions Research ‘This isn’t even about the basic principle of whether it is right to restrict tax relief for those earning over £130,000, though that is still a legitimate subject for debate. This is about the fact that the government’s planned approach will do considerably more harm than good. It is rare to see the pensions industry so overwhelmingly opposed to a reform measure. We urge the government to pause and think again.’

The choice presented in a poll was whether the government should press ahead with its current plans, or alternatively it should adopt a policy of reducing the annual allowance as a means of achieving broadly the same goal. This was not a formal scientific poll but it does illustrate the problem. No one in the pensions industry thinks this is a good idea.

Tom McPhail ‘We challenge the government to find anybody involved in pensions who actually supports this legislative change. So far we haven’t been able to find anyone who is willing to speak up in favour of the government’s plans.’

If you are going to reduce tax relief for higher earners, then a reduction to the annual allowance would at least avoid doing any permanent damage, giving time for a more considered policy to be developed. It would also achieve broadly the same ends at lower cost and with much less damage to the pensions system overall.