Pensions news: page 2
- April 2025
HMRC to end overtaxing of first pension withdrawals from April 2025
HMRC has changed how tax codes are applied to new private pension withdrawals from April 2025, aiming to stop savers being overtaxed on their first payments.
State pension to rise by 4.1% in April 2025
The state pension rises by 4.1% in April 2025 after July earnings growth was revised up, taking the full new state pension to £230.30 a week and £11,975 a year.
- March 2025
First participant connects to pensions dashboards ecosystem
The first participant connected to the pensions dashboards ecosystem in March 2025, with 700 providers and schemes connected by December 2025, covering over 60 million workplace and personal pension records.
- February 2025
IFS report warns small pension pots risk being lost or eroded by charges
The Institute for Fiscal Studies has warned that millions of small deferred pension pots risk being lost or eroded by charges, and has recommended automatic consolidation of pots under £1,000.
Which? responds to FCA Targeted Support pensions consultation opposing the proposals
Which? has told the Financial Conduct Authority it cannot support the regulator's proposed Targeted Support regime for pensions, citing three concerns and making three recommendations.
- December 2024
Pensions Policy Institute research estimates lost pension pots hold £31.1 billion
Research published by the Pensions Policy Institute estimated that lost pension pots in the UK contained £31.1 billion in assets, with 3.3 million pots separated from their owners.
- November 2024
DISP 2.7.6R updated to extend eligible complainant relationships
The Financial Conduct Authority updated DISP 2.7.6R on 30 November 2024, extending the relationships that make someone an eligible complainant to the Financial Ombudsman Service, including for alleged authorised push payment fraud.
FCA exit communications rules for pensions dashboards take effect
Rules requiring firms to tell customers when they are leaving a qualifying pensions dashboard service, and where they are being sent, took effect on 30 November 2024.
Lifetime allowance charge provisions amended for tax year 2024-25 onwards following abolition of the lifetime allowance charge
Amending regulations have changed tax provisions in three pension statutory instruments for the 2024-25 tax year onwards, following the abolition of the lifetime allowance charge.
Interim report of pensions investment review published
The government published the interim report of its pensions investment review on 14 November 2024, proposing consolidation of defined contribution schemes and changes to the Local Government Pension Scheme.
Pensions Investment Review consultation launched on DC workplace pension reforms
The Department for Work and Pensions and HM Treasury have set out final plans to shrink the number of defined contribution default funds and require minimum scale, with legislation promised in the Pension Schemes Bill.
Labour government considering whether to change auto-enrolment
The Labour government said in November 2024 it would consider if and when to change automatic enrolment, weighing improved pension outcomes against the effects on businesses.
Lifetime allowance charge provisions of the FAS tax regulations removed for tax year 2024-25 onwards
The lifetime allowance charge provisions in the Financial Assistance Scheme tax regulations were removed from 18 November 2024 for the 2024-25 tax year and later years.
- October 2024
Government announces Inheritance Tax reform including pensions measure at Autumn Budget 2024
At Autumn Budget 2024 the government announced that most unused pension funds and pension death benefits will count towards a person's estate for Inheritance Tax from 6 April 2027.
Pension-age Housing Benefit to end from 2026
The Budget confirmed that pension-age Housing Benefit will end, with all new claims for housing costs from 2026 administered with Pension Credit instead.
Technical consultation launched on IHT reporting and payment processes for pensions
The government has published a technical consultation on bringing unused pension funds and death benefits into Inheritance Tax from 6 April 2027, with responses due by 22 January 2025.
Pension withdrawals surge 20% in 2023/24
Savers withdrew more than £52bn from their pensions in 2023/24, a 20% rise on the previous year, according to Financial Conduct Authority data reported on 4 October 2024.
ABI publishes lost pension pot statistics
The Association of British Insurers has put the number of lost pension pots in the UK at 3.3 million, with each one worth an average of £9,470, figures dated October 2024.
Government confirms MoneyHelper dashboard will launch before private sector dashboards
The government has confirmed the MoneyHelper Pensions Dashboard will be made available to the public before private sector dashboards, with six months' notice promised before launch.
Inheritance tax freeze extended until 2030
Inheritance tax thresholds that were due to stay frozen until 2028 will now remain unchanged until 2030, keeping the £325,000 nil-rate band and residence allowances at their current levels.
October 2024 Budget announced pensions to enter inheritance tax from April 2027
Pensions will be brought into inheritance tax calculations from April 2027 under Budget reforms, a change expected to raise nearly £1.5bn in 2029-30 and affect around 8% of estates.
Phase 2 of new contribution structure proposed from 1 October 2024
The Scottish Public Pensions Agency has consulted on phasing in a revised NHS Scotland pension contribution structure, with a second phase proposed from 1 October 2024 and the top tier falling to 12.7%.
Unspent pension pots to be included in estates for inheritance tax from April 2027
Unspent pension pots will count towards a person's estate for inheritance tax from April 2027, under a change announced in the 2024 Autumn Budget.
- September 2024
Government has repaid £594m to 99,558 people underpaid state pension due to errors
The government has repaid £594m to 99,558 people who were underpaid their state pension because of system errors, covering the Home Responsibilities Protection error and the LEAP correction exercise.
Royal London analysis shows 49% of new state pension recipients missed the full amount
Royal London analysis of 2023-24 figures shows 49% of new state pension recipients were paid less than the full weekly amount, with 149,317 pensioners receiving under £100 a week.
Call for evidence published on pensions investment review
The government has published a call for evidence in its pensions investment review, asking for views on consolidation, value for money and investment in the UK.
Working-age benefits to rise 1.7% and pension-age benefits 4.1% from April 2025
Working-age benefits will rise by 1.7% and pension-age benefits by 4.1% from April 2025, the Budget confirmed, while Local Housing Allowance and the benefit cap are frozen again.
- August 2024
Government launches pensions investment review
The government has launched a pensions investment review led by Minister for Pensions Emma Reynolds, aiming to boost investment, increase saver returns and tackle waste in the pensions system.
Pensions Investment Review launched by the Labour government
The Labour government launched a Pensions Investment Review in August 2024, and the Pension Schemes Bill 2024-25 that followed it was introduced on 5 June 2025 with second reading scheduled for 7 July 2025.
- July 2024
Chancellor launches Pensions Investment Review
The Chancellor launched the Pensions Investment Review on 20 July 2024 to tackle fragmentation in workplace pensions and the Local Government Pension Scheme, with the final report published on 29 May 2025.