Today marks this year's Pre-Budget Report, with proceedings more akin to a pantomime at times.

Several points are relevant in a pensions context:

• pension credit is to increase by £5 for single people and £7.65 for couples from April 2008;
• State Second Pension accrual to become flat-rate from 2009;
• pursuit of the "goal" for the Financial Assistance Scheme to provide 90% of expected core pension for all recipients;
• there is to be no change to rules to facilitate development of a mode of benefit provision which offers drawdown with a guaranteed income;
• the announcement of draft legislation for anti-avoidance measures "preventing the use of scheme pensions and annuities to enable inheritance of tax-relieved savings and changes to the inheritance tax (IHT) rules to ensure that UK tax-relieved pensions funds in overseas schemes continue to be protected from IHT.";
• the review of open market options (OMOs) has concluded. Despite the document not being available, as stated, at time of writing measures include:
  1. the Pensions Advisory Service (TPAS) setting up a web-based structured choice tool to guide people through their retirement income options;
  2. work by the Financial Services Authority (FSA) with firms on OMO processes - particularly in terms of delays in OMO transfers and compliance with the Treating Customers Fairly principle;
  3. work by DWP with stakeholders to facilitate development of better-focused information for consumers about their annuity options"

The announcements concerning inheritance tax (IHT) caused the most commotion however. The Government will "make the IHT system fairer by ensuring that if a person's tax-free allowance is not used on their death, it can be transferred to their surviving spouse or civil partner, enabling every married couple or civil partnership to benefit from double the tax-free allowance – £600,000 this year – in addition to spouse relief." This provision will be extended to the three million existing widows, widowers and bereaved civil partners.