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Labour MP Reviews Pension Tax Relief as Costs Surge

8/8/2026

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Story summary
  • Labour MP John Healey is reviewing pension tax-relief rules ahead of the autumn budget.
  • Official figures show pension tax-relief costs rose from £48 bn in 2022-23 to £60 bn in 2024-25, a 25 % increase.
  • Higher-rate taxpayers get a 40 % pension tax break and standard-rate 20 %, sending about £40 bn to them.
  • UK defined-benefit pensions set retirement at 60, letting many public-sector staff retire after 35 years with a pension lasting another 35 years.