View more on these topics

Pensions secretary resignation leaves savings policy ‘vacuum’

Returning Officer Holds Abacus at Houses of ParliamentPensions experts have expressed concerns over the future of long-term policy making as work and pensions secretary Esther McVey steps down from her position.

McVey tendered her resignation letter this morning, claiming that the government’s draft Brexit deal would not respect the referendum result and was not something that she could vote for.

Quilter head of retirement policy Jon Greer say Brexit’s impact on sensible policymaking has been to leave a “vacuum” at Westminster, particularly when creating plans for areas like pensions.

“Esther McVey’s departure after just 10 months in her position is unsettling, particular since she evidences the lack of faith in Theresa May’s leadership. Who will replace her and how long they will last is anyone’s guess, particularly given the growing risk of a no-confidence vote.

“Leadership at the Department for Work and Pensions has been about as stable as a mobile home in a hurricane as a parade of ministers have picked up the baton only to fling it away. Setting retirement policy and ensuring we have a well-functioning state pension system is a long-term project which is put at risk if the minister responsible for the DWP changes from one year to the next.

“Those planning ahead for their retirement need certainty and stability when it comes to government policy so that they can make informed financial planning choices. There are some big ticket issues that cannot be ignored for much longer, such as the future of the state-pension, gaps in auto-enrolment and the pension dashboard among many others. However, it seems all this will continue to be on the backburner as Brexit sits center stage at Westminster.”

Royal London director of policy Steve Webb, a former pensions minister, says that McVey’s position, which includes the wider remit of employment across the UK, is less important in reality the more junior role of pensions minister and civil servants within the Treasury though.

“Whoever succeeds Esther McVey at the DWP will have a lot to do as they continue work on Universal Credit and disability benefits. As a result, they will have little time to shape pensions policy. With this in mind the key people shaping pensions policy will remain Treasury and the DWP’s pension minister.”

The position of shadow pensions minister within the Labour party has also seen a revolving door in recent years. The position has been held by Jack Dromey since January, after MP Alex Cunningham stepped down.

Cunningham was in the position for just over a year, taking over from Angela Rayner, who herself was Labour’s fourth shadow pensions minister in under a year.

Recommended

Business-Handshake-General-Hire-Appointment-700x450.jpg

Brooks Macdonald managing director steps down

Brooks Macdonald managing director of UK investment management Nick Holmes is stepping down after 22 years at the firm. He decided to step down from the board on 30 November and will leave at the end of the year, an announcement from the firm this morning reveals. Following Holmes’s departure, the UK investment management business […]

4

FCA confirms ban for jailed Norfolk IFAs

The FCA has confirmed that financial adviser pair Alan and Russell Taylor will not be allowed to work in any regulated position again after being jailed for 11 years on fraud charges. The brothers, who ran Norfolk IFA Taylor and Taylor Associates, plead guilty to conspiracy to defraud earlier this year, after defrauding nearly 200 […]

Schroders Lloyds advice venture restricted to Fusion Wealth platform

The joint advice venture between asset manager Schroders and Lloyds Banking Group will exclusively use the Fusion Wealth platform, the firm has revealed. Lloyds and Schroders recently announced they were joining forces to form a new financial planning business, including taking on around £13bn of Lloyds clients’ assets that were previously held in a  mandate with […]

Is this the endgame for the current mergers & acquisitions boom?

Last year, worldwide mergers and acquisitions (M&A) rose to an unprecedented $4.7tn, according to Thomson Reuters, a 41 per cent increase over 2014. Anthony Forcione, senior equity analyst at Loomis Sayles, an affiliate of Natixis Global Asset Management, looks at what’s been driving this particular wave of mergers. Click here to view full article: Loomis-Sayles

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. I wonder if it ever occurred to them to appoint an expert on pensions to the role?

  2. maybe they should just leave it to the professionals……?

  3. The only vacuum was her inaction and practically invisible profile concerning pensions. She was just concerned in ensuring we all get stuffed by leaving the EU in her favoured way. That would truly put a hole in all our savings. Good riddance say I. let us hope we get someone really engaged with the brief.

  4. Duncan and George….. the Job Title is WORK and Pensions Secretary NOT just Pensions and to be fair the Universal Credit work McVey has done has been of far greater and pressing short term importance and she has done a very good job in that area

Leave a comment

Close

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

Email: customerservices@moneymarketing.com