The new work and pensions secretary David Gauke says now it is not the time to push through a “fundamental” overhaul of pension tax relief given the fragile state of the Government.
Gauke, a former Treasury financial secretary and chief secretary to the Treasury, took over as work and pensions secretary following the election. He replaced Damian Green, who became first secretary of state.
The Financial Times reports Gauke said the Treasury and the Department for Work and Pensions recognised there was a need to “think about the long-term challenges” of the costs of pension tax relief.
The Brexit and pensions fallout of a hung parliamentBut speaking at the Association of British Insurers long-term savings conference in London yesterday, Gauke said: “I wouldn’t see any fundamental changes in the near future.
“The idea of reforming pension tax relief in the previous parliament was somewhat daunting and recent events haven’t changed that.”
Yet he suggested reform may be revisited if there was widespread support for such a move.
He said: “I am not going to shy away from the fact that getting legislation through the House of Commons would be challenging now.
“But that does give us an opportunity to now think about long-term reform, and to try and build a consensus. This is not a time to rush through an announcement then go to legislation in a short time.”