The UK government will now have to respond to a petition launched by wealth management firm AJ Bell after it passed 10,000 signatures.
Last week, AJ Bell launched the petition calling on chancellor Rachel Reeves to make a public commitment to protect the tax incentives that underpin retirement saving in the UK.
The firm is urging the government to commit to retaining both pension tax relief and tax-free cash — two key incentives central to long-term retirement planning — in their current form for at least the rest of this Parliament.
Ending speculation over potential reforms, particularly around tax-free cash, would allow savers to plan with greater confidence, AJ Bell said.
It added that a commitment to a Pension Tax Lock would also establish a policy position that future governments would be expected to maintain.
The petition has already attracted more than 14,000 signatures. The government responds to all petitions that receive over 10,000 signatures. At 100,000 signatures, petitions are considered for debate in Parliament.
AJ Bell director of public policy Tom Selby said: “Pension savers across the UK have sent a clear message to the chancellor: we need a firm commitment to a Pension Tax Lock to allow people to plan ahead with certainty.
“Now the government must step up and deliver its end of the bargain with a public pledge not to tinker with the cornerstone of long-term retirement planning.
“This government insists it is on the side of those who work hard and has said that delivering stability is at the heart of its agenda. Now is the time to show it really means that. Anyone sacrificing take-home pay today to save for the future deserves a concrete promise that they will be able to access their pension on the same terms as the generation before them.”
