Will political disruption pause the pensions agenda?

The news that a new pensions minister, Paul Maynard MP, has been appointed so close to the general election, has received a mixed response from the pensions industry.

Pensions experts have voiced concerns that the disruption of a new minister and a general election in 2024 will pause the agenda at a time when momentum is needed.

David Everett, consultancy LCP’s head of pensions research, said: "We welcome Paul Maynard to his new role as under secretary of state at the Department for Work and Pensions, with responsibility for pensions matters, but warn that the bulging in tray that he will shortly discover will have to be prioritised if he is to make any impact over the short period of time he has until the general election has to be held."

Everett added: “The new scheme funding regime, long promised, long delayed and still not delivered, now seems to be an initiative designed for another age. But he must also not lose sight of some of his ‘day to day’ responsibilities.  The regulator’s General Code has been holed up at Caxton House for over a year.  It's time for it to be published before any more dust settles over it.”

Everett also called for Maynard to get to grips with the pensions dashboard. “The near silence since its March 2023 ‘reset’ is undermining confidence that it will be delivered.  He needs to back it or scrap it.” 

Hitting the ground running

Others questioned whether Maynard has the relevant experience for the job. Kate Smith, pension provider Aegon’s head of pensions, said: ““The new pensions minister will need to hit the ground running, given his lack of financial services experience, this may be challenging. 

“Top of the agenda will be the need to work closely with the chancellor on a number of policy initiatives designed to improve member outcomes, implement the auto-enrolment reforms, drive scheme consolidation and encourage pension schemes to invest in private equity to encourage economic growth. The previous pensions minister, Laura Trott, with her new role at the Treasury may prove to be invaluable here.

“Time will tell whether Maynard will have the time to get up to speed with all things pension and deliver any of the initiatives in flow given that the general election will be a major distraction.”

Same agenda, different government

Another industry insider questioned whether the political direction of travel would really change with a new government. “Jeremy Hunt is the person who is really driving the Mansion House agenda. We are close to a general election. It’s likely that Rachel Reeves is going to support and reinforce Mansion House. Without making it obligatory, she is going to tighten the focus on UK investments, which was in the original Mansion House Compact.

“All the parties have already said they are going to accelerate consolidation. So, consolidation is going to carry on. I can’t see how the election will have a material influence on how the industry works over the next year.”