Welcome to the Pensions Reform Group

"The Universal Protected Pension we put forward is the only workable scheme that guarantees to break the link between retirement and poverty" - Chair of the Pensions Reform Group, Rt. Hon. Frank Field MP.

The Pensions Reform Group was established in 1999 with membership drawn from politics, industry, academia, voluntary bodies, and other stakeholder groups. Our joint endeavour is to begin a serious and detailed debate on banishing pensioner poverty from our shores.

Latest News & Updates

Wednesday, 30 November, 2005

Serious pension reform in prospect - at last. Chair of the Pensions Reform Group - Frank Field - welcomes Pension Commission's 2nd Report

The Chair of the Pensions Reform Group - Frank Field MP - welcomed the launch of the Pension Commission's report in comments made today. He said:

The Pension Commission launches the most powerful broadside against the Government's strategy of forcing an ever growing proportion of pensioners onto means-tested help. The battleground will now centre around the Pension Commission's idea of increasing the retirement age and increasing taxes to pay for a new pension and the Pensions Reform Group's prposals of merging the current pay-as-you-go state pension with a new funded scheme controlled by the contributors.

The Pensions Reform Group's scheme is much more generous to lower income groups and allows all groups to plan safely for additional pensions above a universal adequate minimum.

For information on the PRG's steering group please follow this link

Monday, 28 November, 2005

Golden Opportunities

The best chance to reform the UK's ailing pension system could be missed if the Turner report fails to deliver a focused plan. Is the commission focused on the open goal? The signs are not hopeful.

These are the latest conclusions of the Rt Hon Frank Field, Chair of the Pensions Reform Group in his most recent article for Pensions Week magazine.

To read Frank Field's latest pensions week article and previous articles please follow this link to the press and articles section of the website

Thursday, 24 November, 2005

Frank Field speaks out on Gordon Brown's questioning of Turner

The Financial Times carries a report that the Chancellor has written to the Chairman of the Pension Commission questioning the acceptance in the Commission's report to be published next week that Pension Credit will rise with earnings. Commenting Frank Field said

The Chancellor's letter acts to the pension debate like the barium meal does to an x-ray - it highlights the weaknesses of the whole of the Government's strategy. The concern should not be the Pension Commission has assumed Pension Credit being linked to earnings, but that individual savers and the whole of the financial industry have had to make this assumption.

How else can they plan for the future other than to work from existing policies?

Unless the Government's pension strategy changes, then at some stage, the Pension Credit's link to earnings will be broken. The official estimate is for a cost of an additional 13 p on the standard rate of tax in 2050 if the link remains in place. It clearly can't.

The dilemma for the individual and the financial industry is knowing when this break will occur. Swathes of workers now do not save because they cannot make themselves better off by doing so. No financial company will sell pensions to this group for fear of misselling. But when the Pension Credit's link to earnings is broken, many of this group will become ineligible and will find themselves in a position of never being able to make up the savings they have been advised not to make over past years.

The Pension Reform Group's long-term reform centres on building up a funded scheme to run alongside the existing state pay-as-you-go pension which will, when combined, guarantee over time a pension above means-tested assistance. We believe this is the most affective way of putting a shelf life onto Pension Credit. To cut its link to earnings at an unknown date in the future as the way of controlling the cost of the policy which the Government freely entered into is little short of financial barbarism.

Thursday, 24 November, 2005

Brown to shelve key part of Turner report

Gordon Brown believes pensions proposals to be published next week are unaffordable.

BBC political editor Nick Robinson says the chancellor plans to "shelve" a key part of the Turner report.

Mr Brown is believed to oppose its suggestion the state pension age be raised to 67 to pay for restoration of a link between pensions and earnings.

But Pensions Secretary John Hutton said the report would be treated seriously, and promised a "grown-up debate".

The Turner commission, headed by former Confederation of British Industry boss Lord Turner, was meant to provide a long-term solution to Britain's looming pensions crisis.

But Mr Brown, who received an advance copy of its report a few days ago, is understood to disagree with its plan to restore the link between the basic state pension and rises in earnings - rather than prices as now.

He has consistently opposed restoring the earnings link when it has been proposed by Labour's left or, more recently, the Conservatives and the Liberal Democrats.

He has favoured instead targeting resources on the means-tested pension credit.

Mr Brown has also written to Lord Turner to correct one of the financial assumptions made in his calculations, saying he "should not assume" the link between the pension credit and earnings "will continue beyond 2008".

Tuesday, 22 November, 2005

The Lib Dems have got the right objective of pensions reform but the are going about it the wrong way says PRG

Commenting on the proposals for a Citizenship Pension announced by the Liberal Democrats today, the former Minister for Welfare Reform, the Rt Hon Frank Field said:

The Liberal Democrats have the right objective to take pensioners off means-tests but are going about it in the wrong way. The recent DWP report 'Women and Pensions', showed that in 20 years time men and women will be claiming the basic state pension in equal proportion.

What is necessary therefore is not the scrapping of the contributory principle but of seeking ways by which women who are caring for young children or frail elderly relatives are given full credits.

The Liberal Democrat's Citizenship Pension proposals are based on the something for nothing culture at a time when welfare reform should be based on people working or by being good citizens.

Friday, 18 November, 2005

Turner pensions blueprint to recommend later pension - FT reports

The report from the Turner Commission due at the end of the month is expected to recommend a more generous state pensions in return for a longer working life.

A more generous state pensions, paying out £109 a week rather than the existing £80 a week basic pension rising in line with earnings, not prices would add billions of pounds to taxation and public spending but the bill would be offset by raising the state pension age from 65 to 67.

Higher savings will be promoted though a national pension savings scheme into which all workers will automatically be enroled. Employers and employees will pay a minimum of 6% of salary into an indiviual accounts through the pay-as-you-earn system to reduce costs.

In addition the Turner Coommission is thought to prefer maintaining the state second pension but making it flat rate and aligining its rules more closely with the basic state pension.

The report itself is expected to be published on November 30.

Thursday, 10 November, 2005

2005 Annual Survey of Hours and Earnings

For the tax year ending 5 April 2005, the median gross annual earnings for full-time men were £25,100, up 3.6 per cent from £24,2000 in 2004 and £19,400 for full time-time women, up 4.8 per cent from £18,600.

The latest figures for the 2005 Annual Survey of Hours and Earnings were released by the Office for National Statistics (ONS) today and the full release is available here:

The Pension Reform Group advocates building up a funded provision to run alongside the basic state pension so that in future everyone, including women, part-time workers and carers, will be drawing a minimun pension of between 25 and 30 per cent of average earnings.

Wednesday, 9 November, 2005

Mending the gender gap in pensions - the PRG in the Guardian

In a letter to today's Guardian, the Chair of the Pensions Reform Group stated that the basic question on pension reform remains how we can guarantee everybody an adequate pension to take them free of means-testing.

He also drew attention to the recent 'Women and Pensions' report produced last week by the Department for Work and Pensions. This document stated that in 20 years' time men and women will be retiring with similar levels of entitlement.

The former minister for welfare reform went on to write: 'the issue is not about scrapping the basic states pension and replacing it with the citizen's pensions - based on a flat rate for pensions, but of how best to fill the gap in entitlement for women between now and 2025.'

To see the letter please follow this link to the Press & Media page

Wednesday, 2 November, 2005

Pension report shows 'historical divide' faced by women - Blunkett

A new report on women and pensions published by the Department for Work and Pensions today highlighted the historical divides that women have faced in the pensions system.

Commenting on the report, Frank Field, Chair of the Pensions Reform Grou said:

The key paragraph of the report (paragraph 25 on page 73) states that in 20 years time men and women will be retiring with similar levels of entitlement to the basic state pension. The question therefore is not about scrapping the contributory basic pension and replacing it with a Citizenship Pension - based on the something for nothing principle - but of how best to fill the gap in entitlement for women between now and 2050.

The big question on pensions remains how can we guarantee everybody an adequate pension to take them free of means-testing. Men and women have a similar interest in this question being addressed by the new Secretary of State.

The success of the Pensions Credit in giving more help to the poorest pensioners than any other initiative by any previous government allows the government to direct the whole of its attention to long-term reform. The need for that long-term reform is highlighted again in Women and Pensions.

The Pensions Reform Group advocates building up a funded provision to run alongside the basic state pension so that in future everyone will be drawing a minimum pension of between 25-30 per cent of average earnings.