About 648,000 people accessed an average of £12,800. But this is in line with the ongoing trend of more people accessing their pension for lower amounts, says Morrissey.
She says: “We’re set for a record year of pension withdrawals as the cost of living bites, and we dipped in for a fifth more cash in the first part of the tax year. But this isn’t necessarily anything to worry about just yet because we’re not draining our pots dry.
"Though we will see if the ongoing cost of living crisis alters this in the coming months."
Other things to tell your clients about
To soften the blow from both higher prices and higher taxes, the chancellor moved to cut fuel duty by 5p per litre until March next year.
According to the RAC, a 5p reduction in fuel duty would cut about £3.30 off the price to fill up a typical family car. But it would cost the Treasury around £2.5bn.
The chancellor has cut fuel duty by 5p per litre for 12 months (credit: Pixabay)
The government will also increase the employment allowance to £5,000 from April.
Alex Henderson, tax partner at PwC UK, says: “The increase in the employment allowance for small business is a welcome announcement for entrepreneurialism and growth in the UK.
"The chancellor clearly has ambitions to support businesses to scale ups, to improve growth and to improve productivity in the economy."
The 5 per cent VAT payable on energy efficiency upgrades materials, such as solar panels and materials for heat installation, have been cut to zero.
Guy Gittins, chief executive of Chestertons, says: “The chancellor’s decision to remove VAT for energy-saving equipment presents a major relief particularly for buy-to-let landlords who are required to upgrade their portfolio to meet net-zero targets."
He says amid rising energy costs, he expects the VAT cut to boost homeowners’ interest in implementing eco-friendly energy solutions in their property.
But Elise Coole, managing director of specialist buy-to-let lender Keystone Property Finance, is more sceptical: “While it is a step in the right direction, we believe the government could – and should – be doing much more to help people shoulder the immense financial burden associated with making their homes greener.
“It needs to provide more direct financial support, such as expanding the Boiler Upgrade Scheme so more people can take advantage of it.
"Ideally, this would be alongside the introduction of a replacement for the now defunct Green Homes Grant, which provided grants of up to £5,000 to those making energy saving improvements."
