Overview

• Civil servants’ options include lowering the maximum tax-free cash from £268,275, with scenarios at about £100,000 or £40,000.
• The Treasury has not ruled out the measure, though a Whitehall official said pensions reform is not a priority and is thought unlikely.
• The Institute for Fiscal Studies estimates a £100,000 cap could raise roughly £2bn a year once fully in effect, with deeper cuts yielding more over time.
• Providers say prior speculation drove savers to take lump sums early, risking lower short‑term receipts and operational strains if changes are trailed.
• Other ideas under review include capital gains on high‑value home sales and tighter inheritance rules, as think tanks flag a funding gap near £50bn despite a softer July borrowing figure.