Lords defy Darling on pensions

Chancellor Alistair Darling will face harsh criticism over his plans to tax pension provisions, with the publication of a report by the House of Lords economic affairs committee this week. The committee, led by Lord Vallance, will say that the plans outlined in the chancellor’s Budget, will affect far more people than the chancellor has stated and sound the death knell for final salary pension schemes. The tax affects payments made by employers into the pensions of employees earning more than £150,000.