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

Monday, 20 June, 2005

'Super loby' urges pension reform

The TUC, Which?, Age Concern and Help the Aged will create a new super lobbying group today to argue for compulsory pensions saving. The four orgnaisations will lobby for radical change to the current system as the Government moves towards finding a solution to Britain's looming pensions crisis.

The group will call for employers to be compelled to contribute to their staff's pensions, and for employees to be forced to save every month. It also wants compulsory retirement ages to be scrapped, and a new state pension system which is fairer to women.

The new lobby group - styling itself 'The People's Pensions Coalition' - is expected to meet considerable opposition over some of its proposals, with all of the major political parties, as awell as the CBI, opposed to widespread compulsion.

Brendan Barber, the TUC's general secretary, said: 'This is an unprecedented alliance for a radical new pensions settlement. This powerful coalition speaks for millions.'

The indpendent Pensions Commission, headed by Adair Turner, is due to publish its recommendations for reform this autumn. Mr Turner will join the new Secretary of State for Work and Pensions, David Blunkett, and leading pension industry figures in a one-day conference tommorrow.

Wednesday, 8 June, 2005

PRG believes that David Blunkett will be able to deliver reform to the UK pensions system

Frank Field, former social security minister and Chair of the Pension Reform Group said:

"He is be far and away the best minister we have had at that brief, and if anyone is going to deliver anything it will be him.

I would like to see him adopt the Pension Reform Group proposals. No group has done more work on this.

It could come into play without any additional money, because what we propose is existing - the state scheme continues, pay-as-you-go, we use the contracted out rebate to begin to fund the new scheme.

The scheme could be up and running well before the next election.

Then at the election, people would not be facing something abstract, but a real scheme owned by them with their trustees and governors in control of it.

The debate could then be about how we move to an increased level of compulsory savings within this scheme, which gives us the goal of taking everybody off means-testing.

That is an easier one to negotiate it people see their scheme is working rather than facing reform that has to come in one big bang. I have never believed in that approach in reforming welfare."

Tuesday, 7 June, 2005

Means-testing 'cuts pension saving by 3.7bn'

INSURERS will tell David Blunkett, the Work and Pensions Secretary, that Britain's lowest-paid workers would save an extra £3.7 billion a year if the Government stopped means-testing retirement benefits.

As many as 20 million workers are deterred from putting money aside for their old age for fear of being penalised, according to research commissioned by the Association of British Insurers (ABI).

Helen McCarthy, ABI head of pensions, said: "Action is needed urgently to encourage people to save and save more. (But) individuals and their financial advisers worry that it's not worthwhile saving as they might be better off on means-tested benefits."

The ABI estimates that there is a £27 billion gap between the amount that Britons save and the amount that they need to save for retirement.

It found that the poorest 20 million of Britain's 28 million workers – those earning £9,000 to £25,000 - would save enough to cut the gap to £23 billion if means-testing were ended.

Almost half of Britain's pensioners are eligible for the £105-a-week pension credit, the means-tested benefit introduced in October 2003. But even those with modest savings face an effective tax rate of 40 per cent on savings.

The ABI will also tell Mr Blunkett that he should not get rid of contracting out. This would rob the pensions system of £11 billion a year, its research found.

Wednesday, 1 June, 2005

Slow growth in long term savings shows urgent need for pension reform

The ABI's latest new business figures, for the first quarter of 2005, show a mixed picture on pensions and long-term savings. Overall sales of life and pensions products were £2.49bn, up 2.8% on the equivalent quarter in 2004. However, sales of workplace pensions fell to £183m - down 3.5%.

Chris Kenny, ABI Director of Life and Pensions, said:

"The pensions and long-term savings market is steady. But steady is not sufficient to deal with the growing savings gap. The fall in collective workplace savings shows that the UK is missing a key opportunity to reinvigorate overall saving levels. We need to improve incentives for employers and workers alike, and consistently promote the need to save."

"ABI will launch a detailed policy programme in June which will set out how reform can be achieved. Our figures show that now is the time for action from Government and industry alike; pension reform can no longer be left in the 'too difficult' basket."