View more on these topics

Govt under fire for breaking pensions policy consensus

Work and Pensions select committee chair Dame Anne Begg says Chancellor George Osbrone’s shock Budget reforms have put the political consensus built around pensions policy at risk.

Speaking to Money Marketing, Begg says it is “crucial” to get cross-party support for reforms “so any new Government doesn’t come in and tinker”.

The Turner Commission’s final report, published in 2006, set out a future path for pensions policy supported by all the major political parties. The report called for the introduction of auto-enrolment and the creation of a national pensions savings scheme that led to Nest being established.

Begg says the Chancellor’s decision to announce radical changes to the pension tax system without consultation puts the consensus at risk.

She says: “That is the area I worry about because it didn’t go through the scrutiny the other parts of the pensions jigsaw did. There was no attempt to build a cross-party consensus or a long-term view as to whether this was the right thing to do.

”It might be the right thing but because it was announced in a Budget there was no opportunity to hold that conversation with people across the political spectrum to make sure it everybody bought into it.”

Begg also warns Government reforms that will see a single tier, flat-rate state pension introduced in April 2016 could yet face criticism from the public.

She says: “People see the headline that the flat-rate pension will be £155 a week and they think they are going to get that. Many do not realise there are also calculations around the foundation level, especially if they have been contracted-out. That is all very complicated and not easy to understand.

“The public outcry, if it comes, will come later.”


News and expert analysis straight to your inbox

Sign up


There is one comment at the moment, we would love to hear your opinion too.

  1. “Begg says it is “crucial” to get cross-party support for reforms “so any new Government doesn’t come in and tinker”.

    Oooh….a new goverment tinker around with pensions…..that’ll never happen….wiil it?

Leave a comment


Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm