Following a stab by the Conservatives, the Government confirmed they have no plans to remove the tax relief on pension contributions at the 40% level for higher rate tax payers.
The Government dismissed the challenge as "feverish speculation" and said "Ministers have taken no decisions of the sort".
Shadow Secretary of State for the Department for Work and Pensions, David Willets insinuated that this would be seen as another form of 'stealth tax' and that it was a very bad idea "at a time when the Government is trying to encourage people to save for their retirement".
What are the current tax benefits on pensions?
Learn all about pensions in the Pensions Adviser.com.