Chancellor George Osborne has announced he is launching a green paper on treating pensions taxation the same as ISAs.

Delivering the Budget in the House of Commons today, Osborne said he is “open to further radical change”.

“Britain isn’t saving enough and that’s something to fix in our economy too,” Osborne said.

“Pensions could be treated like ISAs, you pay in from taxed income and it's tax free when you take it out and in between it receives a top up from the government. This idea and others like it need careful and public consideration before we take any steps so I am today publishing a green paper that asks questions invites views and takes care not to pre-judge the answer,” he added.

Osborne said this comes after pension reforms have given huge freedom to people who’ve worked hard and saved hard all their lives. He said it is now time the government looked at the other end of the age scale when people are starting to save for a pension.

Last week Centre for Policy Studies research fellow Michael Johnson published a report that called for the end of the traditional pension and the introduction of a workplace ISA.

Johnson argued that replacing an occupational pension with a workplace ISA would simplify the UK savings landscape in line with what people want from a savings product. In addition, he argued it would make a reduction of up to £10bn on the deficit.

The consultation can be read here.

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