The ink has barely dried on the finalised Pension Schemes Bill, but already attention is turning towards the next legislation that may hit the industry. Those hoping for more parliamentary action soon may be disappointed, writes Nick Reeve.
As the ink dries on the Pension Schemes Act 2026, the industry is now preparing for the next stage: implementation. But how did we get here?
UPDATE: The House of Lords has rejected the government’s latest efforts to limit the scope of the mandation clause, with one former pensions minister warning the whole Pension Schemes Bill could be at risk.
Members of the House of Lords have warned that the legislation backing the scale test is too restrictive and could stifle innovation among DC providers.
Outgoing Pensions UK chair Emma Douglas has been confirmed as the new chair of the Pensions Regulator, the Department for Work and Pensions announced today.
In a debate last night (20 April), peers voted to reject the government’s revised wording of the reserve power, despite attempts from Labour representatives to reassure opponents about the measures.
The Conservative Party has described mandation as “indefensible” and argued that the power to direct investments made by defined contribution master trusts “puts people’s future retirement incomes at risk”.
Shadow work and pensions secretary Helen Whately has hit out at the restored amendment, arguing that it is “still a political hand reaching into people’s retirement savings”.
The government has succeeded in overturning a House of Lords decision on the salary sacrifice cap and the policy will now be enacted as set out in November’s Budget.
Trustees do not need to wait for the Pension Schemes Bill to become law before instructing actuaries to begin work on section 37 remediation, the regulator has said.
The proposed salary sacrifice cap on pension contributions is back down to £2,000 after the government’s majority helped it reject amendments made by the House of Lords.
An external voice is needed “to ask the difficult questions that sometimes professionals either don’t want to hear or don’t quite understand”, says Des Healy of the DWP at a conference in Edinburgh.