Is the PCLS Rate likely or unlikely to be changed?

sgx2000

Given that successive governments have repeatedly leaked potential changes to policies to the press, to basically do ‘market research’ on whether the change would cause uproar.

And given that the last few years the press have all jumped on the potential changes to the PCLS just before each budget.

Just for fun….

Do you think the Government are likely of unlikely to change the size of the PCLS?

LHW99

Where's my piece of string....?

Alexland

Unlikely

When they abolished the LTA they made it clear not to exepct any future LSA increases and inflation will do its evil work eroding the spending power without politicians needing to do anything unpopular that might derail mortgage repayment plans.

dunstonh

Unlikely

It's been in the same ballpark since  2016/17.  (1m with a bit of indexaton to 20/21 but indexation stopped after that and is now a hard limit).

The repeated speculation on PCLS when in reality, it has barely moved for the last 10 years, doesn't really add up.  The hard limit is doing its job.   If the LTA had continued and been indexed, it would be at £1,260,000 now, which equates to an LSA of £315,000.  

MK62

sgx2000 said:

Given that successive governments have repeatedly leaked potential changes to policies to the press, to basically do ‘market research’ on whether the change would cause uproar.

And given that the last few years the press have all jumped on the potential changes to the PCLS just before each budget.

Just for fun….

Do you think the Government are likely of unlikely to change the size of the PCLS?

Are you asking about the maximum size of a PCLS (currently £268275 for most people) or the rate at which a PCLS is applied to the uncrystallised part of a pension (currently 25%).
It's a total unknown, at this time, if either will change in the future, but if one does, I suspect it would more likely be be the former than the latter........but it seems several chancellor's have weighed these options and then backed away from making any changes (though to be fair I suppose any chancellor looking to raise revenue should weigh all their options, so that in itself is no real surprise tbh)