Autumn Budget 2017: Pensions and savings regime left largely untouched

 
Oliver Gill
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Experts had been worried about an overhaul to Britain's pension regime (Source: Getty)

Sweeping changes to the UK's pensions and savings regime were largely avoided by chancellor Philip Hammond today.

Experts praised the government for a comparative "sound of silence" on the sectors.

The Autumn Budget stipulated the lifetime allowance for pensions is to increase in line with CPI, rising to £1,030,000 for 2018/19.

After years of hikes, the Individual Savings Account (ISA) allowance for 2018/19 is to be frozen at £20,000. The annual subscription limit for Junior ISAs and Child Trust Funds for 2018-19 will be increase in line with CPI to £4,260.

Read more: Want to be a pension millionaire? Here's when you can stop saving

Meanwhile, workers on maternity or paternity leave will see their holiday cap from saving into save-as-you-earn schemes increased from six to 12 months.

Irwin Mitchell pensions partner Penny Cogher said:

Thankfully with the concentration on Brexit, it’s business as usual for pensions. Pensions have suffered in past budgets from huge changes with some very complex rules being introduced.

So it’s great news that they’re being given the opportunity to bed down rather than there being more meddling while people are still grappling with the existing rules.

Aegon pensions director Steven Cameron said: “For savers, this budget echoed with the ‘sound of silence’, with not a single mention of savings and more to be said about what wasn’t included than what was. This may be just what was needed as Brexit with all its complexity and uncertainty approaches.

“But those looking beyond Brexit will see today as a missed opportunity to kickstart the next steps of government thinking on social care funding, the rights of self-employed and gig workers or means of banning pensions cold calling to stop scams."

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