Kate Smith – Head of Pensions at Aegon UK – has commented on Laura Trott’s one-year tenure as Pension Minister, following today’s news of Sunak’s Cabinet reshuffle.
She said: “After just over a year as Pension Minister, Laura is ‘trotting off’ to a new, more senior, ministerial job.
“She packed a lot into a relatively short time in her ambition to deliver ‘fairer, more predictable and better run pensions’. This included the Value for Money Framework, small pots work and Collective Defined Contribution pension schemes, and the drive towards scheme consolidation, with fewer larger pension schemes. Many of these initiatives have been intertwined with the Chancellor’s interest in encouraging pension schemes to invest in private equity to boost economic growth. Although an ambitious agenda, much of this is still ‘work in progress’ and with no Pensions Bill included in the King’s Speech, or in sight, it means delivering these initiatives could be some years off.
“Developments to auto-enrolment have progressed during Trott’s tenure, but rather than coming from her department, these were initiated as a private member’s bill by Jonathan Gullis MP – although she probably would have had a role in supporting the Bill’s progress through parliament to become the Pensions (Extension of Automatic Enrolment ) Act 2023. Again, we are waiting on the consultation setting out how and when the reforms will be implemented.
“One area where Trott has made a difference, and delivered, has been to define and publish the first official statistics showing the gender pensions gap, shining a light on the difference between male and female private pensions wealth. This will allow the government, and employers, to monitor the impact of policies and the wider economic pressures on the gender pensions gap, hopefully helping to develop solutions to narrow the gap.
“It will be vital for the new Minister to get up to speed quickly, and continue driving forward these key pension initiatives.”
