Emma Reynolds: New Pensions Minister with a dual role at the Treasury and the Department for Work and Pensions
Emma Reynolds is the new Pensions Minister, with a dual appointment meaning she will work for both the Treasury and the Department for Work and Pensions.
The Wycombe Labour MP’s new dual role was welcomed by pensions industry experts, who expressed hope it would prompt a more co-ordinated approach to pensions policy.
Reynolds returned to parliament at the election, having previously served as MP for Wolverhampton North East between 2010 and 2019.
This included stints as Shadow Foreign Affairs and later Housing Minister, and as Shadow Communities and Local Government Secretary, until 2015.
After losing her Wolverhampton seat in 2019, Reynolds became head of public affairs and policy at financial industry lobby group TheCityUK.
Labour is planning a major pensions review, and we’ve already taken a look at what that could mean for pension tax relief, plans to use people’s retirement savings to help boost economic growth, the state pension and more.
This is Money readers will also be looking to Reynolds to sort out administrative and customer service problems at the DWP, following underpayment scandals and long delays in processing state pension top-ups and resolving other issues.
Readers repeatedly complain that when they call the DWP, call centre staff make empty promises that their concerns will be addressed, but are then ignored.
Other issues Reynolds will have to address include the long-delayed pensions dashboard, the implementation of an expansion of automatic enrolment for young and low-paid savers, the timing of a rise in the state pension age to 68 and whether Waspi women should be compensated.
Raynolds replaces Conservative MP Paul Maynard, who was appointed Pensions Minister last November.
She replaced her colleague, Laura Trott MP, who oversaw the publication of the first official measure of the gender pension gap, and sorted out a long-running mess in which innocent errors in child benefits led to parents losing tens of thousands of pounds in state pensions.
Steve Webb, former Pensions Minister during the Tory-Lib Dem coalition years and now This is Money’s retirement columnist, says: ‘There is much to be said for a ministerial role spanning both Her Majesty’s Treasury and the Department for Work and Pensions.
‘In the past, the two departments have not always been “on the same page” when it comes to pensions policy, and Treasury changes to pension tax relief have sometimes undermined DWP efforts to boost pension savings.
‘With a combined appointment there is an opportunity for pension decisions to take full account of the whole pensions landscape.’
But Webb, who is also a partner at LCP, adds: “One risk, however, is that the Treasury’s desire to see pension assets used to promote economic growth at a macro level could mean that the perspective of individual members receives less attention than it should.
“This is something the new minister will have to take into account.”
Rachel Vahey, director of public policy at AJ Bell, says: ‘The pensions space has always sat, somewhat uncomfortably, between two masters.
‘The DWP is responsible for paying state pensions and regulating occupational schemes.
“But ultimately it was always the Treasury that had the upper hand, with control over finances, setting the rules for pension taxation and the level of state pensions.”
He continued: ‘Historically, pensions ministers and finance ministers have had to work together, and both have had a say in people’s incomes in later life.
‘But, in a breath of fresh air, the new Labour government is seeking to ease this tension by appointing a minister who has a foot in both camps and should have the influence in both departments to get things done.’
Steve Webb: Questions about pensions
Helen Morrissey, director of retirement research at Hargreaves Lansdown, said: ‘Emma Reynolds’ appointment brings with it enormous hope of a more co-ordinated approach to pensions policy across both the Treasury and the DWP.
‘For years the split has caused frustration and bringing in someone who spans both departments can go a long way to making policy more coherent.’
“We expect Labour’s pensions review to include further measures towards industry consolidation, as well as a focus on how pension investment can support the Government’s growth mission,” he said.
‘Reynolds can also use the review to untangle the increasingly tangled pension tax system, moving away from years of fiscal tweaking and providing the long-term certainty people need to make plans.
‘State pensions, the basis of citizens’ retirement income, must also be mentioned. However, the rising bill raises fears that they will not be sustained in the future.
“A plan needs to be put in place to stabilise state pensions and provide certainty about what people will receive and when.”
Jon Greer, head of retirement policy at Quilter, said: ‘Despite being out of government for 14 years, Labour has opted for an experienced MP as its Pensions Minister with the appointment of Emma Reynolds.
‘While he has little experience in pensions, he worked in parliament for almost a decade before his re-election last week.
‘In addition, his most recent experience at financial services trade association TheCityUK should give him a good starting point from a knowledge perspective and give him potential to grow in the role.
‘With experienced hands such as Sir Stephen Timms, twice appointed Pensions Minister at the Department for Work and Pensions, we hope this will bring stability to an industry that is so vital to the health and economy of this nation.
“This appointment gives the impression that Labour will treat pensions with the thought and consideration that is required, particularly as the role is a joint appointment with the Treasury and the DWP.”
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