The Chancellor of the Exchequer, Philip Hammond yesterday delivered the 2018 Budget in the House of Commons.
Whilst topics covered included alcohol, housing, tax and the NHS, the impact on pensions was not discussed.
This was critiqued by Labour leader Jeremy Corbyn in his reply to the Budget.
Mr Corbyn criticised the Government for not setting aside money for the Women Against State Pension Inequality (WASPI).
He said: “There was not even recognition, let alone money set aside, for the women born in the 1950s who have been denied pension justice.”
And he claimed injustices have increased in Britain, saying: “Far from tackling the burning injustices as the Prime Minister said her Government was going to do, they have actually made them worse and increased the injustices in our society.”
This came as WASPI protesters held up banners and shouted from the public gallery during the Budget statement.
Around 20 women appeared to be taking part in the protest which interrupted the Budget.
One held a banner which read: “The Great Pension Robbery”, and others said: “Waspi”.
Labour and SNP MPs stood up and applauded the protest before Mr Corbyn began his response.
What does the 2018 Budget say about pensions?
Whilst Mr Hammond did not speak about pensions to the Commons, the Red Book holding the full details of the Budget does include impacts on pensions.
In the Budget, Managing fiscal risks (MFR) which was published in July this year, highlights the range of policy and management reforms the government has introduced to reduce risks to the fiscal outlook.
Among this is ensuring the pension system keeps pace with increasing life expectancy.
In addition, the government has made provision for NHS pension costs until 2023-24, which will be adjusted in line with the confirmed Superannuation Contributions Adjusted for Past Experience (SCAPE) rate change.
According to the Budget, “Valuations of public service pensions are ongoing, and provisional results indicate that changes will need to be made from 2019-20 to make pension benefits more generous for public servants, including teachers, police, armed forces and NHS staff.
“The Budget confirms a reduction of the discount rate for calculating employer contributions in unfunded public service pension schemes, to 2.4 percent plus CPI (in line with established methodology to reflect OBR forecasts for long-term GDP growth).
“The valuations indicate that there will be additional costs to employers in providing public service pensions over the long-term.”
The Budget also details that the lifetime allowance for pension savings will increase in line with Consumer Price Index (CPI) for 2019-20, rising to £1,055,000.
Tim Holmes, Managing Director of Salisbury House Wealth, the leading financial adviser, told express.co.uk: “This has not been a Budget for savers.”
“The increase in the Lifetime pension Allowance is only in line with inflation – it does not go far enough by a long stretch.”
“Many ‘ordinary’ public sector professionals such as GPs and teachers will be facing substantial tax charges as regular contributions from their salaries may exceed the limit, which is just far too low.”
“In previous years the Lifetime Allowance has been chopped back too aggressively, dropping from £1.8m in 2011-12 to a low of £1m in 2017-18, and has just started to recover.
“The damage done by this is only just beginning to show – with thousands being hit by the punitive tax charges.”
Source : EXPRESS