Overview

• Treasury officials have presented the chancellor with options to reduce the current £268,275 maximum, with scenarios cited at £100,000 and £40,000.
• The Treasury has not ruled out the change, though a Whitehall source suggested pension reforms are unlikely to be a priority for the autumn Budget.
• The Institute for Fiscal Studies estimates a £100,000 cap could eventually raise about £2bn a year, with revenue accruing slowly.
• Industry figures warn that speculation and any sudden cut could prompt pre‑emptive withdrawals, undermine saver confidence and mainly affect those with larger pots, including some defined‑benefit members.
• The pensions measure is being considered alongside wealth and property tax ideas, including capital gains on high‑value homes, tighter inheritance tax rules and possible stamp duty changes.