£50,000 boost for lifetime allowance

Chancellor Alastair Darling scrapped the 10pc starting rate of tax for pensions and earned income; reduced the basic rate of income tax by two percentage points to 20pc; and increased the ceiling for paying national insurance contributions from £34,840 to £40,040.

These changes – which will take effect from April 6 – will reduce net payments to pension schemes.

And, while tax relief is given automatically via net pay arrangements in occupational schemes, basic rate taxpayers will still only get 20pc tax relief – meaning a reduction in take home pay or less money going into the pension.