Labour’s plans to cut pension tax relief looks to funding jobs

Labour have announced that pensioners could be targeted in a bid to help with the UK’s unemployment problem

11:47 04 January 2013

Labour have revealed plans that could affect the countries pensioners, as they look to cutting pension tax relief in order to fund jobs for the unemployed. The move comes one week ahead of the vote on capping increases in benefits.

The Shadow Chancellor Ed Balls has confirmed the plans would only affect those with earnings of over £150,000 annually. This would mean they would only receive 20per cent relief, rather than 50per cent, with regards to their retirement money.

Labour intends to help well over 120,000 people with their £1billion plan, and the long-term aim is that unemployed Brits would be able to get a job after two years of not having one.

It is understood however, that if a person decides not to take a post once they are offered employment they risk losing their benefits.

 

 
The news on retirement is comparable to the plans suggested by Labour previously, which were dismissed by the Government.

Some of the Labour party’s critics perceive that this kind of thinking is how the country got into debt, according to reports.

The Coalition government however, has seen a decline in the number of people unemployed in the UK in 2012, suggesting that some schemes are working.

In the Autumn Statement Chancellor George Osborne said pension tax relief may be reduced from £50,000 to £40,000.