Editorial: Protest, disappointment and even anger met the news that David Gauke, the politician with Treasury experience, has been moved from his post as work and pensions secretary in Theresa May’s latest Cabinet reshuffle. He was replaced by Esther McVey, the department’s 14th secretary of state in 20 years.
The position is currently a poisoned chalice; whoever runs the Department for Work and Pensions must implement the government’s much-criticised universal credit system.
But the pensions industry is disappointed that the job is seen as a stepping stone, as it exerts huge influence on peoples’ welfare; Barnett Waddingham’s Malcolm McLean said it was “dispiriting” that the position is considered to be one people can be moved in and out of.
McVey has DWP experience, but has already come under fire for past health and safety failings at her father’s company, of which she was a director at the time. The company complied with the prohibition notice it was served.
Whether McVey’s other duties will leave her much time for pensions remains to be seen.
But the industry has already identified the key issues McVey faces in pensions: balancing contribution increases with stagnant real earnings; pension scams; and the state pension.
The latter has hit the headlines again in the past week after the government actuary projected the National Insurance Fund will be depleted by 2032 unless national insurance contributions rise.
Meanwhile, those on the ground – scheme managers, trustees, administrators, consultants – continue to ensure their schemes work for members, providing the best outcome and offering them help where needed.
This includes keeping in touch with retired members, usually the most engaged part of the membership. A good line of communication with pensioners can be very useful, experts say, for keeping records up to date or highlighting liability management exercises.
Sandra Wolf is editor at Pensions Expert. You can follow her on Twitter @SandraCWKand the team @pensions_expert.
