18 April 2017

What does the snap General Election mean for our pensions? - Steve Webb, Royal London

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Steve Webb - Director of Policy

Steve Webb

Director of Policy, Royal London

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Commenting on the announcement of a 'snap' General Election, Royal London's Director of Policy Steve Webb said:

A snap General Election throws pensions policy up in the air. If Theresa May secures a bigger majority, radical reform of things like pension tax relief becomes much more likely. A key question is whether the parties will have time to put detailed plans in their manifestos or whether we will get vague promises of reviews with all the detailed work done after the Election. What is clear is that a new Government and a possible new ministerial team are likely to mean yet more unwelcome uncertainty over the future of pension tax relief.

“On the state pension, the Government has a legal duty (under the 2014 Pensions Act) to respond to the recently completed review of the state pension age by May 7th 2017. The prospect of an imminent election probably means an aggresesive timetable with twenty-somethings working into their seventies is off the table for now.

“The triple lock on the state pension must now be up for grabs. But the Conservatives face a tricky choice, now that Labour has pledged to retain the triple lock. With inflation approaching 2.5%, the cost to the Treasury of the triple lock becomes relatively small. If the Conservatives were to decide to scrap the triple lock in the weeks before a General Election it would be a sign of supreme confidence about the likely outcome of that Election.

-ENDS-

For further information please contact:

Steve Webb, Director of Policy, Royal London

About Royal London:

Royal London is the largest mutual life, pensions and investment company in the UK, with funds under management of £117 billion, 8.8 million policies in force and 3,745 employees. Figures quoted are as at 30 June 2018.