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Labour plans to slash pensions tax relief for richest

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Labour plans to slash pensions tax relief for richest

Labour is to unveil plans to cut pensions tax relief for top rate payers to just 20% to fund a compulsory job scheme for the long-term unemployed, according to the Financial Times.

The move would raise around £1 billion and hit those paying the 45p tax rate, leading to them facing an additional tax bill of £10,000 a year.

Shadow chancellor Ed Balls (pictured) will unveil the plans today, according to the FT. They are expected to fund a ‘jobs guarantee’ for those unemployed for more than two years, with the government paying the minimum wage and national insurance.

The jobs in the private or voluntary sector would last six months and are intended to help the unemployed find a permanent job. Those who refused to take part would face penalties.

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