On 28th October 2026, the Chancellor announced a series of adjustments to both the State and private pensions. The Government confirmed that the State pension will rise by 3.9% from April 2027, and the Triple lock will be ‘adjusted’ from April 2030. In addition, to avoid pensioners with the State Pension as their only source of income from being taxed, a new Pension Tax Allowance is being introduced from April 2027.
In changes that will potentially affect your BCF pension, the Government announced it was immediately abolishing the 2-year rule on tax-free pension lump sums and death benefits. Before the Budget benefits automatically became taxable if the Scheme did not distribute them within two years of being advised of the member’s death.
The Budget also contained changes to make accessing serious ill-health lump sum benefits easier for terminally ill members, and some technical changes in connection with the Inheritance Tax changes due in April 2027.
As always, if you think you may be affected by these changes, please seek advice from a trusted financial advisor. BCF is not able to provide any advice.
