New govt urged to prioritise pensions

The new government has been encouraged to prioritise pensions policy and follow through with their manifesto promises after the Conservative’s landslide election victory yesterday (12 December).

In its pre-election pledges, the Conservatives promised to review the public sector pension tax system, re-introduce the Pension Schemes Bill and consult on the net pay/relief-at-source pension systems.

The Pensions and Lifetime Savings Association (PLSA) has urged the government not only to fulfil its promises, but to go further and widen the scope of auto-enrolment and increase employer contributions.

PLSA director of policy, Nigel Peaple, said: “Ensuring adequate contributions, fostering effective engagement and allowing well-run schemes to operate at appropriate scale provides the blueprint for making the greatest difference to the greatest number of people. We must get on with improving the system.”

Aegon pensions director, Steven Cameron, added: “The Conservative manifesto committed to making sure 1.3 million non-taxpayers in ‘net pay’ schemes receive the 20 per cent tax relief on their pension contributions to which they are entitled.

“The lowest earners deserve every help they can get to save for their retirement so this must be another top priority. Tax rules and reliefs must be fit for the future and work together without unintended consequences across all earnings bands.”

Hargreaves Lansdown head of policy, Tom McPhail, agreed that it was time for the government to seize the opportunity to improve the pensions system.

He commented: “Undoubtedly, we will see the reintroduction of Guy Opperman’s oven-ready Pension Bill which ran out of time at the end of the last parliament.

“This bill will strengthen protections for occupational scheme members, pave the way for pensions dashboards to be developed and open up the option of a new type of shared-risk pension scheme.

“We believe there is a way the UK’s pension system could be made simpler, fairer and more efficient, with proper incentives to save for all; there is now the opportunity to pursue this reform.”

    Share Story:

Recent Stories


Climate Investing
Laura Blows speaks to Aled Jones, Head of Sustainable Investing for Europe at FTSE Russell, and Adam Matthews, Director of Ethics and Engagement for the Church of England Pensions Board, about the role of climate investing within a pension fund portfolio.

Managing volatility
In the latest Pensions Age podcast, Laura Blows speaks to Cambridge Associates head of European pension practice, Alex Koriath, about the Covid-related market volatility and how pension funds can prepare for the challenges ahead

De-risking options for pension schemes
In this latest Pensions Age podcast, Linklaters' Sarah Parkin talks to Laura Blows about the wide range of choice available to pensions schemes for the partial, or full, removal of their risks

Risk transfer opportunities
Laura Blows speaks to Lisa Purdy, Head of Fiduciary Distribution at Legal & General Investment Management and Gavin Smith, Pricing and Execution Director - UK PRT at Legal & General, about the impact of the recent market volatility on the bulk annuity and risk transfer market and the potential opportunities for the future

Bulk annuities during coronavirus
Laura Blows speaks to Just business development manager Prash Mehta about the impact of coronavirus on transactions