Baroness Ros Altmann stepped down as Pensions Minister, citing "short-term political considerations" inhibiting "good policymaking".

In her resignation letter to Prime Minister Theresa May, Altmann stated that: “Unfortunately over the past year, short-term political considerations, exacerbated by the EU referendum, have inhibited good policymaking. As the country heads into uncharted waters, I would urge you and your new team to enable my successor to address some of the major policy reforms that are needed to improve pensions for the future.”

In the letter, Altmann said that it is “vital” to continue to roll out auto-enrolment and that the government should look to develop a “one nation” pension. This would include a “long overdue reform” of pensions tax relief, which would have flat-rate tax relief more generous than the current basic-rate tax relief, and withdrawals taxed in later life as a behavioural incentive not to spend retirement savings too soon.

A major review of DB pension scheme funding and affordability is urgently needed, she added, to ensure adequate resources for younger generations' pensions, and to consider the potential use of pension assets to boost economic growth.

Altmann also stated that women affected by the increase to state pension age were not adequately informed, and “I am not convinced the government adequately addressed the hardship facing women who have had their state pension age increased at relatively short notice”.

The weekend saw confusion over Altmann's successor, with the government announcing that MP for Portsmouth North Penny Mordaunt had been appointed Minister of State at the Department of Work and Pensions on Friday night, but also announcing the same appointment for East Hampshire MP Damian Hinds on Saturday.

Mordaunt was previously the Minister for Armed Forces, while Hinds was the former Exchequer Secretary to the Treasury.

The government has yet to respond to requests for clarifications as to which MP will hold the pensions brief, but an announcement on the matter is expected later today.

Baroness Ros Altmann had held the position of Pensions Minister since 11 May 2015.

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