Home care platform Elder calls for more Government clarity regarding tax-free pension changes
Home care platform Elder has urged Chancellor Rachel Reeves to put an end to rumours regarding tax-free pension changes by providing clarity ahead of the Autumn Budget.
Media and analysts have speculated that Reeves could make changes to the 25 per cent tax-free Pension Commencement Lump Sum (PCLS), which, in turn has seen a heightened level of pension withdrawals and anxiety for taxpayers.
According to the Financial Conduct Authority (FCA), the money withdrawn from pensions soared by more than a third in 2024/25, jumping from £52.2 to £70.9 billion.
Elder Founder and CEO Pete Dowds said that the Chancellor’s silence on the PCLS was forcing families into irreversible financial decisions.
Pete said: “The cost of leaving families in this state of uncertainty is far too high, and savers who have worked diligently to provide for their later years deserve stability and assurance,” he said.
“We strongly urge the Chancellor to address this speculation now, before the Budget, to safeguard the retirement plans of millions of hardworking families.”
Pete Dowds said that the PCLS was the most crucial source of accessible capital used to cover the upfront costs of care for self-funding families, and if changes were made, it would also undermine the Government’s ‘Home First’ objective to support people at home and improve hospital flow.
“The tax-free lump sum provides the essential bridge that allows people to afford high-quality live-in care, keeping them independent and actively supporting the reduction of pressure on the NHS,” he said.
“Any budget measure that diminishes the value of this tax-efficient capital would hasten the depletion of families’ savings, undermining their ability to self-fund.”
Home care technology from Elder recently stated that it has been helping to move over 1,000 people from hospital to home, 973 of these within 72 hours.
