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Labour ‘could slash lifetime allowance to fund tuition fee cuts’

The Labour Party is reportedly planning to lower tuition fees by removing tax breaks on offer to pensions savers.

The Times reports that Labour is planning to drop the ceiling for tuition fees from £9,000 to £6,000.

However, to fund the move, shadow chancellor Ed Balls will reportedly target tax incentives offered to pension savers in order to raise the £2bn needed each year.

One of the options said to be being considered is a reduction in the £40,000 annual allowance, or a cut to the £1.25m lifetime allowance.

A Labour spokeswoman says: “Labour will set out our policy on tuition fees shortly.”

The reports come shortly after Labour promised to improve tax revenues with a new tax dodgers bill, while the Lib Dems have planned a new offence of aiding tax evasion.

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Comments

There are 10 comments at the moment, we would love to hear your opinion too.

  1. So just when pension saving looks attractive for peoples’ futures good old Ed Balls decides to start making it unattractive again.

  2. Par for the course with socialists who love spending other people’s money on their pet projects. God help us if Balls and Miliband are in Downing Street after the election!

  3. All I have to say is “sad”.

    May be they could fund the £2 billion needed by restricting child allowance to two children.
    That makes far better sense, but then that does not gain you votes does it.

    When I think I limited my family to two children because I thought I could not afford any more. It would appear I have more children than I thought, they will be asking for birthday presents next.

  4. And of course it hits the private sector pension savers harder, far harder than the public sector.

    Even now, you need double the LTA to provide a secure index linked pension equivalent to £62,500 p.a. which is what you can have from a public pension within the LTA cap.

    The cap is a nonsense and should be dropped immediately.

    Politicians are fekking clueless!

  5. If this is true labour will lose the grey vote and not get into power. I know there is huge value tied up into pension funds but this does not mean that Governments should be able to do a Maxwell and raid those funds for other purposes. These pension funds were accumulated by means of regular savings over many years. They also serve the purpose of providing an income into old age thereby reducing the need for state benefits etc. They also provide a resource for long term care costs which is likely to be an ever increasing burden on the state and projected to become more so over the years.
    How were tuition fees funded before the huge increase by the current government? They were and are to some extent self funding through student loans. I know leaving University with a large loan is not ideal but when spread over a working life (and often a better paid working life) at low rates of interest then they still seem a good deal to me.

  6. F**k you Labour.

  7. Charlie Threadneedle 23rd February 2015 at 4:27 pm

    The annual and lifetime allowances are a cap to none but the highest earners in the country. Oh, to be able to contribute £40k/year into my pension. The average wage is around £24K per annum and it is that figure that should be borne in mind when considering the effect of changes to taxes on the UK population as a whole.

  8. Another reason, were any needed, not to vote Labour.

  9. Actually, thinking about it, such a policy proposal from Labour is entirely consistent with the relentless slew of anti-pensions measures enacted during its last dreadful spell in office. It all started with GB’s removal of the facility for pension funds to reclaim the tax deducted at source from dividend income. After that, things just got worse and worse until the very word pension had, to most people other than those in cushy gold plated Rolls Royce public sector schemes, become utterly poisonous. The prospect of Labour getting EVER getting back into power is simply appalling.

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