Budget 2023: Pension lifetime allowance scrapped

The cap on the amount that savers can build up in their pensions before paying extra tax has been abolished in a surprise announcement by the chancellor

Plant growing from coins inside a glass jar
(Image credit: © Getty images)

The pension lifetime allowance has been scrapped in a surprise announcement by the chancellor Jeremy Hunt.

As part of the Spring Budget, Hunt also hiked the £40,000 pension annual allowance to £60,000, its first increase since 2010.

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Ruth Emery
Contributing editor

Ruth is an award-winning financial journalist with more than 15 years' experience of working on national newspapers, websites and specialist magazines.

She is passionate about helping people feel more confident about their finances. She was previously editor of Times Money Mentor, and prior to that was deputy Money editor at The Sunday Times. 

A multi-award winning journalist, Ruth started her career on a pensions magazine at the FT Group, and has also worked at Money Observer and Money Advice Service. 

Outside of work, she is a mum to two young children, while also serving as a magistrate and an NHS volunteer.