Former Labour Chancellor Gordon Brown kicked off Labour’s war on retirees in 1997, gutting private pensions with his infamous dividend tax stealth grab.

That single move drained billions from private sector final salary schemes, wrecking millions of retirements.

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Some people on State Pension could be due extra DWP payment

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HMRC issues letters with new tax codes to UK households – what they mean

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Rachel Reeves targeting millions of pensioners with latest £40bn tax grab

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HMRC cuts tax-free Personal Allowance for people with letter K on payslip

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‘No excuse!’ Fury as Keir Starmer delivers huge snub to Britain’s pensioners

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Brits entitled to State Pension don’t realise it – and they’re missing out

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Lee Anderson: The Government has just proved its outright hostility to pensioners

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Pensions black hole – Brits have ‘eyes shut’ over savings

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HMRC urges pension savers to look out for letter with payout ‘most won’t claim’

Comments

Triple lock alert as this legal loophole means it can ‘easily be abolished’

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HMRC sends letters for ‘first time in decade’ to people earning more than £1k from savings

Comments

No. 10 finally reveals Keir Starmer, Angela Rayner and Rachel Reeves’ tax returns in full

Comments

HMRC sending new tax codes to people with savings

Comments

As Donald Trump smashes our pensions Rachel Reeves plots to grab whatever’s left

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Rachel Reeves’ stealth tax raid that will cost pensioners £3,000

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Rachel Reeves urged to hike THREE taxes and slash pensions relief in all-out war on wealth

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Tax codes explained as workers urged check payslips to avoid overpaying HMRC

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State pensioners to be hit with stealth tax raid as HMRC data shows millions affected

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Some people on State Pension could be due extra DWP payment

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HMRC issues letters with new tax codes to UK households – what they mean

Comments

Rachel Reeves targeting millions of pensioners with latest £40bn tax grab

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Millions of pensioners at risk as Rachel Reeves plots new £40bn tax raid

Comments

HMRC cuts tax-free Personal Allowance for people with letter K on payslip

Comments

‘No excuse!’ Fury as Keir Starmer delivers huge snub to Britain’s pensioners

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Brits entitled to State Pension don’t realise it – and they’re missing out

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Today private sector “final salary” pensions barely exist while taxpayers continue to fund them for public sector workers, costing a small fortune.

Reeves is now following the Brown playbook. Her first major policy move revealed her direction of travel. What’s coming next could cost pensioners far more.

1. Winter Fuel Payment raid.
Reeves’s first act as Chancellor was to scrap the Winter Fuel Payment for 10million pensioners, costing them up to £300 each. While many were wealthy, two million were just above the poverty line, with some pushed back below it. It triggered outrage but was only the beginning.

2. Frozen tax thresholds.
The Chancellor has continued Jeremy Hunt’s policy of freezing income tax thresholds until 2028, a fiscal sleight of hand that could hit pensioners hard.

Because the state pension rises every year under the triple lock, more older people are being dragged into the tax net.

As many as 700,000 more pensioners will be paying income tax next year, pushing the total past nine million.

By 2027, the full new state pension alone will become taxable, forcing even more into HMRC’s clutches, and swelling Treasury coffers by almost £100million a year.

There are rumours Reeves could extend the freeze until 2030, hitting even more.

3. Inheritance tax on pensions.
Right now, pensioners can pass on unused defined contribution pension pots to loved ones on death, with no inheritance tax (IHT) to pay.

In her Budget, Reeves said she would change that from 2027.

Yet these pensions are already taxed. If the policyholder dies from age 75, beneficiaries pay income tax on withdrawals.

If Reeves has her way, families could be taxed twice. First IHT, then income tax. The double death tax could strip up to 84% from their pot.

It’s a cruel blow for those who spent a lifetime saving wisely.

4. £40billion company pension grab.

Incredibly, that isn’t enough for Reeves. She’s also eyeing up the £160billion surplus sitting in private defined benefit (DB) workplace pension schemes.

Under proposals expected soon, companies would be allowed to withdraw surplus cash to invest in their businesses, with the Treasury pocketing a 25% tax charge on each withdrawal.

That could hand Reeves up to £40billion.

Supporters claim this will “unlock capital” and fund growth, but experts warn it risks undermining the safety of pension promises.

Stephen Lowe of retirement advisors Just Group warned: “Extracting surpluses and making riskier investments could put retirements at risk.”

A recent survey found 60% of DB scheme members fear their pensions are now under threat.

5. Slashing higher-rate pension tax relief.

Most Popular Comments

“I’ve now looked at the figures for my pension increases. I have an extra £31 a month in total from my state pension and civil service pension. …” 110

“And don’t forget that she needs more and more money for the ever increasing Channel …” 67

“Our Elderly Deserve to be Treated with Dignity and Respect Reform UK will ensure …” 58

JOIN THE DEBATE

Before she was appointed Chancellor, Reeves wrote that 40% or 45% pension tax relief is too generous.

Many thought she would cut it to a flat 20% or 25% for all in last year’s Budget, but she eventually decided against.

Yet with the nation’s finances in an even worse state, she may have to revisit this idea. It could save billions a year.

Reeves could even claim it’s fair – as wealthy people get more tax relief on their contributions than lower earners.

As yet, we don’t know what she will do. One thing is certain. While Labour eyes up private pensions on every possible front, the public sector remains untouched.