Pensions Reform – 2010 onwards
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The Government is undertaking a landmark reform of the UK pensions system. This follows extensive work to identify the problems facing the pensions system. Then a proposed package of measures, designed to deliver increased financial security for an ageing population, underwent an unprecedented national consultation process in order to build a genuine, broad based consensus around the way forward.
This work culminated in two White Papers:
- Security in Retirement on 25 May 2006
- Personal Accounts: a new way to save on 12 December 2006
The first phase of the reforms was completed with the Pensions Act becoming law in July 2007. The second phase, in the Pensions Bill, was introduced to Parliament on 5 December 2007.
The Pensions Act 2007
In July 2007 The Pensions Act legislated for the reforms to the State Pension system set out in the first of these White Papers. Measures in the Act will, over the coming years, make the state system more generous, fairer to women and carers, and more widely available. The Act also created the Personal Accounts Delivery Authority to advise on the introduction of a new, simple, low cost pensions savings vehicle.
The Pensions Bill
A Bill entered Parliament on 5 December to take forward measures aimed at encouraging greater private saving. These include a duty on employers to automatically enrol their eligible employees into a good quality workplace pension scheme (provided they are not already in such a scheme) and provide a minimum contribution. It also allows for the establishment of the personal accounts scheme, a simple, low-cost pensions savings vehicle. You can read the Bill, the Impact Assessment (updated in April 2008), the Gender Impact Assessment and some factsheets relating to the personal account scheme via the links below.
- Pensions Bill
- Pensions Bill Impact Assessment - Full document (975MB)
- Cover, Summaries and Contents (170KB)
- Chapter 1: Overview and summary of costs and benefits (227KB)
- Chapter 2: Making it easier and more attractive to save (325KB)
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Chapter 3: Extending access to simple, low-cost saving: personal accounts (167KB)
- Chapter 4: Compliance (182KB)
- Chapter 5: Strengthening existing provision (142KB)
- Chapter 6: Improving trust in private pensions (112KB)
- Chapter 7: Further simplifying State Pensions (99KB)
- Chapter 8: Polish War Pensions (72KB)
- Chapter 9: Amendment to section 59(5ZA) of the Social Security Pensions Act 1975 (71KB)
- Annexes (406KB)
- Cover, Summaries and Contents (170KB)
- Gender Impact Assessment (499KB)
- Factsheets
Find out more about the Pensions Bill.
Deregulatory Review
The Government response (311KB) to the findings of the independent Deregulatory Review was published on 22 October 2007. The response set out proposals for change and sought views. The consultation period ended on 15 November. The response to the consultation (91KB) was published on 5 December 2007.
Find out more about the Deregulatory Review.
A Consultation on risk sharing (2MB) was published on 5 June 2008.
Pensions Forum
The Pensions Forum was designed to give you the opportunity to contribute to the key phases of the development of the governemnts pension policy.
The Forum, including the Ministers weblog, is now closed. There is an archive of the issues covered by the Forum.
You can still register for email updates on future developments in pensions policy.
A big thank you to everyone who contributed to the Forum.