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UK's Labour attacks planned pension changes

17/03/2023 10:36

 Britain's opposition Labour Party vowed on Thursday to reverse the government's planned pension changes, saying they were a giveaway to the top 1% of pension savers at a time when many households are being hit by tax increases and high inflation.

Finance minister Jeremy Hunt surprised his Conservative Party by announcing in a budget statement on Wednesday that he would no longer impose tax penalties on lifetime pension savings which exceed 1 million pounds ($1.2 million).

Hunt said the reform was part of his bid to keep more older people in work and address a shortage of workers in Britain.

The Labour Party, which is well ahead of the Conservatives in opinion polls before an election that is expected in 2024, said the move was the "the wrong priority, at the wrong time, for the wrong people".

Labour said the policy would mean that people with more than 1.4 million pounds in their pension pot would pay a total of around 150,000 pounds less in tax, at a time when basic rate taxpayers are facing higher tax bills.