Overview

• Labour is planning to reintroduce a pension tax cap while considering exemptions for senior public sector workers, including NHS doctors, to prevent a workforce exodus.
• The proposed exemptions have raised concerns of retirement inequality, with critics arguing they would unfairly benefit public sector workers over those in the private sector.
• Legal experts warn that the plan could trigger a wave of legal challenges from private sector workers who feel discriminated against.
• The debate comes as Labour leads in the polls, with the party committed to reintroducing a lifetime allowance in a fair way.
• The reintroduction of the pension tax cap could affect around 250,000 people, according to consultancy analysis.