Pensions veteran Steve Cameron, pensions director at Aegon, has joined the chorus of experts warning the government against scaling back pension tax relief for high earners in the Budget.

A leading pensions administrator is calling for pension holders who shift their pensions overseas purely for tax gains to pay more for the privilege as it warns the trend is placing an unnecessary burden on UK taxpayers.

In a surprise move in his Autumn Statement, Chancellor Philip Hammond announced he would cut the money purchase annual allowance from £10,000 to £4,000 from April 2017 to stem the use of the facility to provide “double pension tax relief.”

Employers grappling with automatic enrolment face further headaches if a single flat rate of pension tax relief becomes reality, a pension firm director says, as he also warned it could become an active disincentive to save.