Ros Altmann backs Waspi in stinging resignation letter
From the blog: The end of Ros Altmann’s tenure as pensions minister on Friday capped off a week in which print news seemed doomed to be out of date by the time it hit the shelves.
One of the last victims of Theresa May’s cabinet reshuffle, Altmann’s position has been renamed as Parliamentary Under-Secretary for Pensions, to be carried out by Richard Harrington, MP for Watford.
It is thought that parts of the downgraded portfolio may be hived off to the Treasury.
The policy expert took advantage of her letter of resignation to launch a few parting shots at her former colleagues within David Cameron’s government.
“As a minister, I have tried to drive positive long-term changes on pensions from within government and ameliorate some of the past mistakes which I have cautioned against,” wrote Altmann.
She continued: “Unfortunately over the past year, short-term political considerations, exacerbated by the EU referendum, have inhibited good policy-making.”
Extract from Altmann's resignation letter:
'Fair treatment for women and better communication on state pensions: On the issue of women's state pension age, whilst I respect the democratic decision taken in 2011 by our parliament, I am not convinced the government adequately addressed the hardship facing women who have had their state pension age increased at relatively short notice. They were not adequately informed. I also believe we must devote resource to widely communicating and publicising the coming changes to state pension age for both men and women.'
Setting out key areas for chancellor Philip Hammond and DWP secretary Damian Green to address in the future, she highlighted the need for pension tax reform and for policy to address intergenerational bias brought about by defined benefit deficits.
Making peace with Waspi
But the peer saved her most interesting criticism for last, seeming to throw her weight behind the Women Against State Pension Inequality campaign.
“On the issue of women's state pension age, whilst I respect the democratic decision taken in 2011 by our parliament, I am not convinced the government adequately addressed the hardship facing women who have had their state pension age increased at relatively short notice. They were not adequately informed,” she wrote.
'A 'one-nation' pension - long overdue reform of pension tax relief: Our present ineffective and complex incentive structure for pension saving costs over £40bn a year. It favours the highest earners disproportionately, while leaving lower earners seriously disadvantaged. We need a radical overhaul of incentives, which can offer more generous help than basic rate tax relief, but as a straightforward government pension contribution for all, and would end the discrimination against Britain's lowest earners who are forced to pay at least 20 per cent more for their pension than higher paid workers. This 'one nation' pension would see withdrawals taxed in later life, so that people have a behavioural incentive not to spend the money too soon.'
Self-professed champion of equality Altmann fell foul of the Waspi campaign during her time in government for appearing reluctant to back their cause.
She has previously claimed that, while she was keen to use government money to ease the transition in state pension age for women, she was “silenced” by former boss and Brexit campaigner Iain Duncan Smith.
'A major review of defined benefit pension scheme funding and affordability: We must urgently assess the future of our defined benefit pension schemes. Given the risks of diverting corporate resources to one favoured group of workers, the need to ensure adequate resources for younger generations' pensions, the time is right to properly consider the issues facing employers trying to support defined benefit pension schemes and potential use of pension assets to boost economic growth.'
Waspi leaders seemed to have buried the hatchet with Altmann in an update on their website, calling on members to “give her the benefit of the doubt”.
“Perhaps Ros Altmann's conscience and sense of justice has prompted her resignation?” they wrote.
“Now outside of government she can be our greatest ally. She has an impressive record of fighting for pension justice (which is her passion).”
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