Labour has said it will reverse Chancellor Jeremy Hunt’s £1 billion Budget pensions tax break for high earners if it gains power at the next general election.

Shadow chancellor Rachel Reeves said the party will seek to force a Commons vote next week on the decision to scrap the £1.07 million lifetime pensions allowance.

The measure is designed to prevent consultants retiring early from the NHS because the current pension rules mean it is not worth them carrying on working.

This gilded giveaway is the wrong priority, at the wrong time, for the wrong people

The Office for Budget Responsibility has estimated that – combined with an increase in the pensions annual tax-free allowance, from £40,000 to £60,000 – it will increase employment by 15,000 workers.

However, Ms Reeves said a Labour government would reinstate the lifetime allowance and create a targeted scheme for doctors rather than allowing a “free-for-all for the wealthy few”.

“At a time when families across the country face rising bills, higher costs and frozen wages, this gilded giveaway is the wrong priority, at the wrong time, for the wrong people,” she said.

“That’s why a Labour government will reverse this move. We urge the Chancellor and the Conservative government to think again too.”