Pensions: Labour to cut tax-relief for the highest earners

Posted on March 12th, 2014 | Categories - News

iStock_000024336538_ExtraSmallIt has emerged that if Labour win the next election, they will cut tax-relief on pensions for the highest earners and use the proceeds to fund a new job creation program for young unemployed people.

Under the plans Labour would reduce the tax-relief received by those people earning in excess of £150,000 each year from 45% to 20%.

The money saved would be used to fund the Compulsory Jobs Guarantee, designed to help young people, who have been out of work for more than six months, to find a job.

According to Labour the move will affect around 300,000 people and save £1 billion each year.

Quoted in the Sunday Telegraph, Shadow Chancellor, Ed Balls, said: “We need a recovery for the many, not just a few at the top. As a country we simply cannot afford to be wasting the talents of thousands of young people and leaving them stuck on the dole for years on end.” (Source: Telegraph)