§ Mr. George OsborneTo ask the Chancellor of the Exchequer what the cost to the Exchequer would be under its proposed reform of pension taxation of imposing no lifetime saving allowance on pension savings in 2006–07 and each of the subsequent three years. [170235]
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§ Ruth KellyThere would be a cost attached to having no lifetime allowance under the proposed simplified pension regime. The size of this cost depends upon behavioural effects and any estimate of cost would inevitably be very broad-brush. However, given the potential additional pension savings from those in the top 1 per cent. of the earnings distribution, the cost to the Exchequer could be up to several hundred million pounds over this period.