Fears that the removal of advanced corporation tax relief from pension funds has led to problems in the UK pensions system are being questioned by the National Association of Pension Funds (NAPF), which maintains that tax credit removal is only part of the problem.
Experts at NAPF highlight a number of factors that have contributed to problems surrounding pension funds in the UK, including increased longevity and a decline in equity markets.
"The removal of the tax credit in 1997 was very unhelpful, but it was only one of several reasons why workplace pensions have come under pressure in recent years," explained NAPF director of policy Nigel Peaple.
"Some of these pressures were beyond anyone's control."
To help address the problem, Mr Peaple recommends that the government provide additional help for employers that provide effective pensions with a view to limiting regulatory burdens. To this end he also urges the government to ensure that the new Personal Accounts scheme is designed to complement existing pensions provision.
Gordon Brown is facing fresh criticism over pension amid reports that he was warned of the ramifications of removing tax credit for pensions back in 1997.
Pension trouble 'not just caused by tax credit removal'
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Pension trouble 'not just caused by tax credit removal'
Tue, 03 Apr 2007
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