The newly elected Labour government has appointed Labour MP for Wycombe, Emma Reynolds, as the UK’s Pensions Minister.

Writing on X (formerly Twitter), Reynolds said she was “delighted” to spend her first day meeting colleagues and officials “in my new role as Pensions Minister”.

Reynolds was appointed as Parliamentary Secretary across both the Department for Work and Pensions (DWP) and the Treasury, and has been given the pensions brief.

The country’s pensions industry has welcomed the appointment of “experienced parliamentarian” Emma Reynolds as Pensions Minister, but has warned that the minister will have “a lot on her plate” amid a crucial time for pensions policy.

Many in the industry highlighted how her role in both the Treasury and DWP gives hope to more joined-up thinking on pension policy work between the departments.

Cushon director of policy & research, Steve Watson, noted that, under the previous government, a lot of pensions initiatives, such as the Mansion House Compact, were being pushed by the Treasury, with a foot in both the DWP and Treasury.

“But there is a lot on her plate: The pensions landscape review, DC consolidation and decarbonisation,” he continued. “And of course this is a government which has pitched itself as one of growth, so reinvigorating capital markets is a key focus and greater investment of pensions into the UK in ‘productive finance’ initiatives will be a focal topic over the next few years.

“Even in existing policy initiatives there is a lot to tackle, like the Value for Money Framework, small pots consolidation, pot for life, and the extension of auto-enrolment (AE).

“How the new Pensions Minister begins to prioritise and tackle all of these crucial challenges and initiatives will be vital to how the sector evolves.”

Pensions Management Institute director of policy and external affairs, Tim Middleton, congratulated Reynolds on her appointment, noting that it comes at a time when there is much crucial work to be done.

“Some proposals could be achieved over the short term, but others would involve major changes that would take years to enact,” he stated.

“The most obvious changes called for are to the AE regime. The 2023 Act received Royal Assent, but the regulations required for their implementation have yet to be laid before Parliament. Many in the industry have been calling for an increase to the minimum statutory rate of contributions for years.

“What is also striking is the desire for the government to commit to longer-term projects. Financial education is clearly important to PMI members. There is also a desire to reform the tax regime, which ironically has complicated a system it was introduced to simplify. A standing Pensions Commission would allow pensions policy to be formed for the long term without being compromised by the short-term constraints of the parliamentary system.

“There is much to consider here. We welcome the opportunity to meet the new Minister for Pensions to discuss these proposals. We are sure Emma Reynolds will rise to the exciting challenge of her new position and confirm that we would be delighted to offer our support.”

TPT Retirement Solutions chief executive, David Lane, concurred that one of the most pressing priorities for Reynolds will be the expansion of AE.

“A renewed focus on innovation in the pension consolidation space would also be welcome from the new minister," he said. "Reform in this area could allow pension schemes to benefit from increased scale to deliver better returns for savers.

“Finally, the new government should consider legislation to allow the creation of multi-employer collective DC pension schemes.”

Quilter head of retirement policy, Jon Greer, added that while Reynolds has “little pensions experience to speak of”, she is an “experienced parliamentarian”, having previously served in parliament for nearly a decade prior to her re-election.

“Furthermore, her most recent experience being at TheCityUK financial services trade association should give her a good starting point from a knowledge perspective and provide potential to grow into the role,” he stated.

“With experienced hands such as two-time Minister for Pensions, Sir Stephen Timms, also being appointed at the DWP, we hope this will give stability to an industry that is so vital to the health and economy of this nation.

“This appointment does give the view that Labour will treat pensions with the thought and consideration that is required, not least because the role is a joint appointment with the Treasury and DWP. Given the importance and complexity of pensions, it is positive to see the role being recognised for having implications across departments.

“After a number of years of pensions being used as a political football, we hope Labour’s huge majority will give it enough cover to sensibly plan reform and improve upon the current regime where possible.

“While her pensions experience may be lacking, in her previous stint in parliament Reynolds has shown some understanding of the issues facing the sector – including debating on the implementation of the pensions dashboard and pension credit reforms.

“Outside of Sir Steve Webb and Guy Opperman, the pensions industry has had to put up with an ever-revolving door of ministers. Even someone experienced like Sir Stephen Timms himself never made it to a year in charge in his previous two stints.

"Hopefully Emma Reynolds can come in and provide some stability over the course of this parliament, especially when it is people’s retirement and ability to maintain living standards in old age that is at stake.”

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