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Tories attack £5,000 Personal Accounts cap

The Tories have warned that setting a £5,000 limit on Personal Account contributions risks ‘backdoor nationalisation’ of occupational pension provision.
The Conservatives say the limit risks diverting funds from current occupational schemes as the £5,000 maximum cap is the equivalent to the yearly pot accrued by an individual earning £37,000 a year and making average contributions to a defined occupational scheme.
Shadow Work and Pensions Secretary Philip Hammond says a change to the limit of £3,000 a year proposed by Turner risks wrecking the current consensus over pensions that currently exists between the three main Parties.
Hammond says: “Personal Accounts were supposed to be targeted at those on average and lower incomes and any increase in their scope could lead to a backdoor nationalisation of occupational pension provision.”
Gordon Brown has already raided £100bn from pension funds since 1997 and last week introduced a new stealth tax to prevent pension funds being passed onto children. Now we have yet another attack on occupational pension saving.”

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