Queen's Speech and a new government – pensions implications

A new government was elected on 27 May 2015. In the Queen’s speech the government said it will maintain the basic state pension “triple lock” for the next five years, which means that basic state pension will be increased each year by the highest of the growth in average earnings, prices inflation or 2.5%. It also announced a ban on income tax, VAT and National Insurance Contribution increases for five years, as well as an extra budget on 8 July 2015. We may hear more in that budget about the conservatives’ manifesto plan to cut tax relief on pension contributions for those earning over £150,000.

Ros Altmann has been appointed as the new Pensions Minister, succeeding Steve Webb.