Joined-up thinking: Emma Reynolds to work across DWP and Treasury

Emma Reynolds, MP for Wycombe, has been confirmed as pensions minister, reporting to chancellor Rachel Reeves and to Liz Kendall, the work and pensions secretary.

Commenting before Reynolds’ brief was confirmed, Webb – who was pensions minister within the DWP for five years under the Conservative-Liberal Democrat coalition government – said Reynolds’ role could lead to a more cohesive approach to policymaking between the two departments.

“There is much to be said in favour of a ministerial role which spans both HM Treasury and the DWP,” Webb said. “In the past, the two departments have not always been ‘joined up’ when it comes to pensions policy, with Treasury changes to pension tax relief sometimes undermining DWP efforts to boost pension saving.

“With a combined appointment there is the opportunity for decisions on pensions to take full account of the whole pensions landscape.

“One risk, however, is that the Treasury desire to see pension assets used to promote economic growth at a macro level could mean that the individual member perspective gets less attention than it should. This is something that the new minister will have to guard against.”

Nigel Peaple, director of policy and advocacy at the Pensions and Lifetime Savings Association, told Pensions Expert last week that a joined-up approach to pensions was likely.

“In the Labour manifesto, it said a pensions review would look at two things in particular: outcomes for savers, which can mean various things, and the link to supporting UK growth,” he said.

“It feels like the Treasury will have a strong interest in the pensions brief, as it has done over the past few years. I imagine it will be a joined-up approach between the two departments.”

Industry reaction

After Reynolds' brief was confirmed on 11 July, industry commentators welcomed the appointment - but made it clear that she had a long to-do list. Aside from the promised pension system review, Labour has promised changes to employment law and significant policy developments regarding green finance, both of which could have an impact on the pensions industry.

Others highlighted the gender pensions gap, the development of collective defined contribution, the expansion of auto-enrolment, and support for open defined benefit schemes as among key priorities for the new minister.

The Pensions Management Institute said a poll of its members also found that financial education and the establishment of a pensions commission, independent from government, were also desirable priorities.

In a letter to Reynolds, the Society of Pension Professionals' president, Sophia Singleton and chief executive Fred Emden called for the minister not to be too hasty to make changes.

“Whatever policy approaches are taken in relation to any pension issues, our key ask is that you take sufficient time over your decisions, consult thoroughly with industry and allow a sufficient period for any changes to be implemented - very much in keeping with the Labour Party’s manifesto commitment to undertake a comprehensive in-government review of pensions policy," they wrote. "This maximises the chances of policy success and impact whilst simultaneously minimising the risks of unintended consequences.”

Calum Cooper, head of pensions policy innovation at Hymans Robertson, said: ”It’s important for [Reynolds] to recognise and utilise the collective industry wisdom that’s been pooled through many pensions consultations over the last few years and drive action forward.”

Jon Greer, head of retirement policy at Quilter, called for stability "after a number of years of pensions being used as a political football", adding that "we hope Labour’s huge majority will give it enough cover to sensibly plan reform and improve upon the current regime where possible".

Eve Read, senior director of strategic delivery at Smart Pension, echoed Greer's thoughts and urged Reynolds to focus on strong outcomes for savers throughout her work.

“As Emma Reynolds’ ministerial roles will draw on resources across both the DWP and the Treasury, her appointment as pensions minister is promising for savers in that it may mean a less siloed approach to pension policy decisions that currently sit across the two departments," Read said. "However, we would want to ensure that pension savers’ outcomes remain at the forefront of the agenda, without being overshadowed by broader Treasury objectives.”

About Emma Reynolds

Reynolds was elected as the MP for Wycombe in last week’s general election, after five years out of parliament. She beat Steve Baker, the Northern Ireland minister, with a majority of more than 4,500.

She was previously MP for Wolverhampton North East between 2010 and 2019, holding several shadow minister roles under previous Labour leader Ed Miliband. During her time outside of parliament, she worked for TheCityUK, a financial services trade association.

Pensions policy in different areas is set by various departments of government.

The DWP and the Pensions Regulator oversee trust-based arrangements, for example, while the Treasury and the Financial Conduct Authority regulate contract-based pensions such as those provided by insurers.

The Treasury is also responsible for tax policy, something that has been a major point of contention within the pensions sector for some time.

The Department for Levelling Up, Housing and Communities oversees the Local Government Pension Scheme.

Further reading

Meet the new bosses: Key appointments in Labour government (8 July 2024)

PLSA calls for government focus onDC decumulation, Funding Code (5 July 2024)

This article was updated on 11 July with further industry comment after Emma Reynolds' brief was confirmed.