Pensions policy under the UK’s new Government

The Labour Party returned to office for the first time in 14 years after the UK general election on 4 July 2024.

Our briefing note collates what Labour politicians said about pensions policy in the heat of the election campaign, in the run-up to it, and during their first few days in government.

• Pension investments/consolidation: Like her predecessor, the new Chancellor, Rachel Reeves, has indicated that she wants more pension assets to be invested in UK “productive capital”, and lists this as one of the levers she plans to pull to boost economic growth. “Greater consolidation of all types of scheme” is seen as a step towards this. No details have been offered regarding consolidation of private sector defined benefit schemes, but ministers inherit plans to create a public sector consolidator with investments influenced by the government.
• Workplace pensions: Labour supported the principle of making pension contributions apply to earnings from the first pound and enrolling 18-21 year-olds, but have not committed to any timetable.
• Pensions taxation: An earlier pledge to restore the Lifetime Allowance was omitted from Labour’s manifesto. In general, Labour’s stance on pension tax changes during the campaign was to say that revenue-raising measures were not planned and not needed, but not to rule them out. A “firm commitment” was offered on tax-free lump sums, but the scope of this was unclear.
• State Pensions: Labour have committed to apply the Triple Lock every year until the next general election. They accept the imminent rise in State Pension Age to 67 and have not said how soon they will review the timetable for increasing it to 68.

Contact

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David Robbins

Director, Retirement

email Email

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