Finance (No. 2) Bill Committee: New Clause 24

What happened: On 13 January 2026, the House of Commons voted on New Clause 24 during the Committee stage of the Finance (No. 2) Bill. The clause, tabled by Conservative MPs, sought to add new provisions to the Bill beyond the government's original proposals. The clause was defeated by 331 votes to 184, with the government's position prevailing.

Why it matters: New Clause 24 was part of a broader set of opposition amendments relating to clauses 63 to 68 of the Finance (No. 2) Bill, which introduce inheritance tax on unspent pension assets for deaths occurring after 6 April 2027. The opposition sought to expand the Bill's scope or require further review of these measures. The defeat means the government's approach to pension taxation proceeds unchanged, with implications for individuals who have structured retirement savings with inheritance planning in mind, pension scheme administrators, and personal representatives who will face new liabilities under the reformed rules.

The politics: The vote divided almost entirely along party lines. All 289 Labour MPs and 34 Labour and Co-operative MPs voted against the clause, while Conservatives, Liberal Democrats, the Scottish National Party, the Democratic Unionist Party, Plaid Cymru, and Traditional Unionist Voice all voted in favour. Two Reform UK members also voted aye. There were no Conservative or Liberal Democrat members voting no, and no Labour members voting aye. Five independents voted on each side. This opposition unity reflects a broader cross-party challenge to several of the government's October 2024 Budget measures, including employer National Insurance changes which saw similar voting patterns in related divisions during March 2026.