Angela Rayner’s Secret £800M Pension Plot EXPOSED – Retirees Face Double Tax Shock!

Deputy Prime Minister Angela Rayner is facing serious criticism after a leaked plan revealed she wants to bring back the pensions lifetime allowance, a rule that was scrapped in 2023. Critics say this idea is unfair and could end up punishing people who try to save for their retirement. Experts say it could also do more harm than good, especially for workers in the public sector like NHS staff.

The plan, if put into action, could bring in around £800 million each year for the government, according to estimates from the Office for Budget Responsibility. The lifetime allowance, before it was removed, set a limit of just over £1 million on how much people could save in their pensions without paying large tax penalties. If you went over the limit, you had to pay a 55% tax if you took the extra as a lump sum, or 25% if you took it as income. Rayner’s plan would bring back this cap, meaning savers could once again be taxed heavily if their pension pot grows too large.

There’s also a concern about a double tax hit. From 2027, new rules will make pension pots part of inheritance tax. So people might be taxed heavily when they save, and then again if they try to pass their pension to their family after death. One possible softer version of the plan mentioned in the memo would bring the cap back at £1.8 million instead of £1.07 million, like it was under the last Labour government, but that would raise less money.

Jeremy Hunt originally removed the lifetime allowance to encourage older professionals, especially doctors and NHS consultants, to keep working instead of retiring early due to tax penalties. Labour had opposed this move, and Shadow Chancellor Rachel Reeves once promised to bring the cap back. But she later changed her mind when doctors threatened to quit if the tax returned, leading her to scrap the idea for her first Budget.

Instead, Reeves introduced a new plan to apply inheritance tax to pension savings starting in 2027, which many said was a harsh blow to high earners and wealthier retirees. Now, Rayner’s leaked plan to reintroduce the lifetime allowance has stirred up the debate all over again.

Financial experts have spoken out strongly. Jason Hollands from Evelyn Partners called the proposal a “tax-hikers’ wish list” and said it would seriously damage trust in pensions. He warned it could lead doctors and consultants to retire early again or turn down extra work—hurting NHS staffing and efforts to reduce waiting times. If the government tried to make an exception for public workers while still taxing private sector workers heavily, Hollands said it would cause major outrage.

Laith Khalaf from AJ Bell also criticized the plan. He said bringing back the lifetime allowance would be a huge step backwards. He explained that the UK already limits how much you can pay into a pension each year, so this rule would punish people simply for doing well with their investments. Khalaf added that it would be especially bad for public sector workers like NHS doctors and could create new layers of confusion and complexity. Protecting people who saved while the rule was gone would be extremely complicated, he said, and that kind of mess makes people lose trust and hesitate to save at all.

Overall, the idea of bringing back the pension cap has sparked big concerns across the financial world. Many believe it would harm both savers and public services, especially if not handled carefully.