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Queen’s Speech reveals deficit reduction, banking and pension reform

The Government will legislate on the structural reform of banks and reforming adult social care and make changes to state and public sector pensions, according to the legislative agenda set out in today’s Queen’s Speech.

Speaking in the House of Lords this morning, the Queen said the Government’s’s first priority would be reducing the deficit and restoring economic credibility and boosting growth. She said the Government would introduce legislation to reduce the burdens on businesses, including limiting “state inspections” of firms. Legislation will also be brought forward to “promote enterprise and fair markets”.

Her speech, prepared by members of the cabinet to set out the legislative agenda for the next Parliamentary year, confirmed legislation will be brought forward to implement the recommendations of the Independent Commission on Banking. “Measures will be brought forward to further strengthen regulation of the financial services sector,” she said.

The speech also confirmed reform the state and public sector pensions will emerge, something tipped by the Chancellor at March’s Budget. 

She said: “My Government will bring forward measures to modernise the pension system and reform the state pension creating a fair simple and sustainable foundation for private saving. Legislation will be introduced to reform public sector pension in line with the recommendations of the Independent Commission on Public Service pensions.”

In its final report, published in March 2011, the commission suggested public sector schemes move from a final salary to career average pension. It also said the normal pension age in most public sector schemes should be linked to the state pension age and called for the introduction of a “clear cost ceiling” to limit taxpayers’ exposure to the schemes.

The speech also confirmed draft legislation will be published to modernise adult social care and support in England. The Government was expected to publish a progress report on the funding of long-term care and its response to the recommendations of the Dilnot Commission alongside a draft bill in the spring. That has now been delayed until June amid concerns it could be sidelined until after the next general election. The speech did not mention reform to the funding of long-term care


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There are 3 comments at the moment, we would love to hear your opinion too.

  1. David Parkinson 9th May 2012 at 12:40 pm

    I wonder if all this Pension Legislation change will be applied to MP’s as well?? Or maybe they can get the normal exemption. Just like the Smoking Ban!!! Go for it Dave & lead by example not by exeption!

  2. Gee how wonderful, I’m so GLAD the government is going to SIMPLIFY things. That way the pensions industry will become more cost effective and easier to understand. And of course the silly old Trades Unions will see how sensible it is to sort out the public sector pensions, and they’ll be GLAD they sorted things out so the public finances will get better.


  3. Im just glad that I had the sense to give up the day job and draw mine early thereby locking in the benefits. Otherwise I would still be working and get less pension for my trouble. Phew!

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