Overview

• Media reports, citing LCP analysis, say the Chancellor is considering pension tax changes to address a multibillion‑pound shortfall estimated at about £51 billion.
• LCP highlights three options reportedly under discussion: cutting higher‑rate relief, capping the tax‑free lump sum, and limiting or ending salary‑sacrifice arrangements.
• The consultancy says ending salary sacrifice would hit over three million basic‑rate taxpayers and increase employer costs.
• Analysts warn that capping tax‑free cash or reducing higher‑rate relief would disproportionately affect public‑sector workers and those with long service.
• Experts argue major reforms would require lengthy consultation and system changes, curbing near‑term receipts, while the Treasury declines to comment on speculation ahead of the 26 November Budget.