Chancellor considers asking workers to pay more into their pension schemes

It’s been reported that Chancellor George Osborne is considering a plan to raise the minimum contribution rate for private sector pension schemes from 8% to 12% of a worker’s salary. The increase could be phased in over five years and could also be dependent on wage increases. It is believed that the idea is being opposed by Steve Webb, the Liberal Democrat Pensions Minister.

Gary from PSI: It’s interesting to note that since this has been reported a source at HM Treasury has distanced the Chancellor from the proposal.