Pensions spotlight: Labour drops plans to bring back Lifetime Allowance (LTA)

retirement savings over time stock image

Keir Starmer’s Labour Party has reportedly abandoned plans to bring back the pensions Lifetime Allowance (LTA) if it wins the upcoming election, branding the suggested move ‘too complex’.

Reinstating the LTA will not be included as part of the party’s election manifesto, which is due to be published on Thursday, the Financial Times reported. Shadow Chancellor Rachel Reeves is said to have decided against the proposal due to the potential uncertainty and complexity it would create for savers.

The LTA, which capped tax-free pension savings at £1,073,100, was removed by current Conservative Chancellor Jeremy Hunt in 2023.


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