© Suzanne Plunkett 2016
Chancellor Philip Hammond largely avoided extensive changes to the pensions and savings regime of the United Kingdom.
The government was applauded by experts for a comparative “sound of silence” on the sectors.
The Autumn Budget that is stipulated in the lifetime allowance for pensions is set to increase in line with CPI, increasing to £1,030,000 for 2018/19.
The allowance for the Individual Savings Account (ISA) for 2018/19 is to be frozen at £20,000 after years of hikes. In line with CPI, the annual subscription limit for Child Trust Funds and Junior ISAs for 2018-19 will be increased to £4,260.
Meanwhile, workers on paternity or maternity leave will see their holiday cap from saving into save-as-you-earn schemes increased from 6 to 12 months.
Penny Cogher, the Irwin Mitchell pensions partner, stated: “Thankfully with the concentration on Brexit, it’s business as usual for pensions. Pensions have suffered in past budgets from huge changes with some very complex rules being introduced.
“So it’s great news that they’re being given the opportunity to bed down rather than there being more meddling while people are still grappling with the existing rules.”
Steven Cameron, the Aegon pensions director, stated: “For savers, this budget echoed with the ‘sound of silence,’ with not a single mention of savings and more to be said about what wasn’t included than what was. This may be just what was needed as Brexit with all its complexity and uncertainty approaches.
“But those looking beyond Brexit will see today as a missed opportunity to kickstart the next steps of government thinking on social care funding, the rights of self-employed and gig workers or means of banning pensions cold calling to stop scams.”