The Government’s consultation on pension tax relief, “Strengthening the incentive to save”, which was published on 8 July 2015 following the Chancellor’s announcement in the Summer Budget that he is “open to further radical change” on the subject closed on 30 September 2015.

The consultation aims to establish whether there is a case for changing the level and timing of pension scheme taxation.

Although the Government purports to be open-minded to maintaining the status quo, it estimates that in 2013-14 the gross cost to the Treasury of the current pensions tax relief was “nearly £50 billion” and commentators have suggested that the Government is paving the way to remove tax relief on contributions and instead give tax relief on payment of pensions. This would make pension contributions substantially less attractive as an employee benefit.