For weeks, we have been led to believe that the Chancellor would finally do the dirty on us and cut our right to take tax-free cash from our hard-earned pensions. Nasty Rachel Reeves, horrible Labour.

After all, Ms Reeves was minded to give it a serious haircut in last year’s disastrous Budget, only to focus instead on destroying UK businesses with a tsunami of extra National Insurance costs.

This time around, it seemed inevitable, especially given the heavy beating of drums for such a move from rabid socialist think tanks and influential Labour ministers keen to attack personal wealth (most notably Treasury minister and wealth traitor Torsten Bell).

Day after day, Money Mail asked the Treasury to come clean about its plans. Day after day, it refused to rule out a raid.

Yet this week, Treasury officials have suddenly let it be known in briefings to the Press that an attack on tax-free pension cash will NOT now feature in the Chancellor’s Budget on November 26.

Ms Reeves, it seems, has turned her attention to bigger fish: breaking her manifesto pledge not to increase income tax rates.

So, an attack on our pension tax-free cash has been ruled out a second time. It means we will still have a right to take a quarter of our pension fund as a tax-free lump sum from the age of 55, subject to a cash cap of £268,275.

A massive hurrah, of course, and a big victory for the Daily Mail.

But what a farce – and what a cruel game Labour has played with those who have done everything asked of them and built a pension fund to help finance their journey through their later years. 

Only then to be duped into taking out tax-free cash because they feared they would lose it if they didn’t.

Why didn’t Labour come clean straight away on its intention not to touch tax-free cash?

Yesterday, the farce notched up a level. All day, Money Mail pushed Treasury officials to release a statement confirming to the public that it wouldn’t be capping the amount of money savers can take tax-free from a pension. 

Hours and hours passed, then finally a spokesman gave us this bland nonsense: ‘We do not comment on speculation around tax changes outside of fiscal events.’

In other words, they still won’t tell you the truth. If ever you needed proof of the utter contempt Labour holds for prudent savers, this was it.

Sadly, the good news is too late for many readers who have taken tax-free cash they didn’t really need: the likes of 55-year-old Richard Ulett, from Stroud, Gloucestershire, who withdrew £160,000 over fears a cash cap of £100,000 would feature in the Budget.

Former pensions minister Steve Webb fears thousands have taken tax-free cash they didn’t need and now regret accessing.

For some people, doing so will not have caused them financial harm. This is especially the case if they have used the money to clear a mortgage, buy a new car or to fund a once-in-a-lifetime holiday.

But for others, taking out a large tax-free sum has backfired spectacularly. They have exposed their lump sum to tax, depleted their pension fund and deprived it of earning future investment returns on the money they withdrew.

Mr Ulett, owner of an engineering firm, is furious. Married to Rebecca, 55, with whom he has three grown-up children, he says: ‘It is not fair the way the Chancellor has played games with our future retirement plans.

‘Public sector employees get paid no matter what they do and enjoy a fat gold-plated pension funded by the taxpayer. But in the private sector, you must fight just to survive and keep your job.

‘To have your retirement savings pickpocketed by the Government is reprehensible.’

Although Ms Reeves did not tighten the tax-free cash rules in last year’s Budget, withdrawals surged 60pc to £18billion. Outflows have been at a similar level ahead of this year’s Budget.

Pension experts are now urging the Chancellor to make a promise to leave tax-free cash alone until the next election.

Mr Webb, now a partner at pension consultant LCP, says: ‘The ability to take 25 per cent of a pension pot free of tax is one of the few well understood and jealously guarded features of the pensions system. 

This Government, like its predecessors for the last 40 years, has realised that going after tax-free cash is a step too far.’

Lisa Picardo, UK chief business officer at PensionBee, says: ‘Keeping this important benefit unchanged will help to preserve savers’ confidence in the pensions system and encourage people to continue putting money aside for their future.

‘Stability and trust are essential to ensure people feel rewarded, not penalised, for saving consistently throughout their working lives.’

Absolutely. But we think Ms Reeves owes those who took tax-free pension cash based on fear of losing it, rather than financial good sense, one almighty apology.

Furthermore, she should allow those who took cash they didn’t need to roll it back into their pension fund so they can grow a bigger pot to see them through retirement.

It’s the very least the Chancellor should do. She caused the harm, and it is her and her Treasury department who should correct it.