ABOUT £4 billion of taxpayers’ money is to be doled out to the rich for their pensions in the same year that New Labour plans to rob every public sector worker of £20,000 from their pension. Under new pension rules coming into effect in 2006, the rich will be able to stash up to £215,000 tax free every year.
This will shift even more of chancellor Gordon Brown’s pensions spending to the richest 10 percent of the population who already receive 50 percent of tax relief.
The changes will allow those who can afford a self-invested pension plan (Sipp) to borrow a sum equivalent to 50 percent of their pension pot to invest on luxuries.
Ros Altmann, an independent pensions adviser, was employed by Tony Blair to help out the estimated 70,000 private sector workers whose pensions have been stolen. She said, “At a time when thousands of people have seen their pensions wiped out through no fault of their own, it is outrageous that a Labour government is prepared to hand out huge sums to people who are already well off.”