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An update from our Parlimentary Advisors
Minster for Pensions Emma Reynolds delivered a speech on delivering better outcomes for our future pensioners to the ABI on Thursday 3 October.
The speech by the Minister for Pensions, Emma Reynolds, addresses key government reforms aimed at improving pension outcomes and boosting investment in UK growth assets. Key proposals include consolidating small pension pots, implementing a Value for Money framework for defined contribution schemes, and mandating retirement products. The reforms focus on enhancing pension investment in productive assets, promoting economic growth, and improving retirement options for future pensioners. An interim report on these initiatives will be published in autumn 2024.
The Department for Work and Pensions published a press release on a consultation launching today to modernise the pensions system.
The UK government has launched a consultation to expand Collective Defined Contribution (CDC) pension schemes to more employers, offering better financial security for workers. CDC schemes pool contributions to deliver stable returns, spreading risk and reducing complexity for savers. This initiative aims to modernise pensions, provide predictable income, and support the government’s economic growth goals. The consultation, open until November 19, 2024, invites feedback on proposed regulations for multi-employer CDC schemes.
The House of Commons heard oral questions on Work and Pensions. One question focused on the number of pensioners in poverty due to cuts to the winter fuel payment.
Liz Kendall (Secretary of State for Work and Pensions) stated that approximately 880,000 pensioners are missing out on pension credit and thus the winter fuel payment. She outlined government initiatives to boost pension credit uptake through outreach and new communication strategies.
Gregory Stafford (Con, Farnham and Bordon) expressed concern about his constituents losing support and highlighted individual cases. Kendall responded by pointing to local funding and the importance of utilising it effectively.
Ben Obese-Jecty (Con, Huntingdon) and Wendy Morton (Con, Aldridge-Brownhills) critiqued the government’s expected impact on uptake, and Kendall blamed previous Conservative administrations for the low engagement.
Debbie Abrahams (Lab, Oldham East) and Rachael Maskell (Lab, York Central) raised concerns for those just above the poverty line, suggesting wider social support integration.
Mel Stride (Con, Central Devon) challenged the economic impact, questioning whether increased pension credit uptake would negate expected savings. Kendall reaffirmed her focus on equitable distribution despite fiscal constraints.
Steve Darling (Lib Dem, Torbay) emphasised the impact on over-80s, and Kendall reiterated her commitment to targeting aid for the poorest pensioners despite budgetary limits.
