Conservative MP Alun Cairns is rallying support among his colleagues to call for reform of income drawdown, as savers continue to face dramatic cuts to the income they are able to take.
According to the Mail on Sunday, Cairns (pictured) expects to get the backing of 20 to 30 fellow Conservative MPs in his campaign to force Treasury ministers to act on the issue. Savers have been hit by April 2011 rules limiting the amount that can be taken to 100% of Government Actuary's Department rate, down from 120%.
Cairns told the paper he had been contacted by numerous members of his Vale of Glamorgan constituency angry at the drop to the income they can take. He said those hit by the change were 'Conservative supporters - successful entrepreneurs and businessmen. The changes are unfair and need amending'.
Sipp provider AJ Bell recently renewed its campaign to return the GAD rate to the pre-2011 level of 120% for those on capped drawdown.