ARTICLE
21 January 2025

Chancellor Postpones Second Phase Of Pensions Review "Indefinitely"

NR
Norton Rose Fulbright Hong Kong

Contributor

Norton Rose Fulbright provides a full scope of legal services to the world’s preeminent corporations and financial institutions. The global law firm has more than 3,000 lawyers advising clients across more than 50 locations worldwide, including London, Houston, New York, Toronto, Mexico City, Hong Kong, Sydney and Johannesburg, covering Europe, the United States, Canada, Latin America, Asia, Australia, Africa and the Middle East. With its global business principles of quality, unity and integrity, Norton Rose Fulbright is recognized for its client service in key industries, including financial institutions; energy, infrastructure and resources; technology; transport; life sciences and healthcare; and consumer markets.

Labour's planned second phase of the Pensions Investment Review, focusing on pension adequacy and auto-enrolment reforms, has been postponed indefinitely. The first phase interim report outlined investment trends and proposed consolidation measures for UK pension funds.
United Kingdom Employment and HR

One of Labour's election manifesto pledges was a detailed Pensions Investment Review, the second phase of which appears to have been postponed "indefinitely". The interim report of the first phase of the review was published on November 14, 2024.

The interim report set out trends in UK pension fund investment with comparisons to selected countries and outlined proposed measures to achieve scale and consolidation in the defined contribution workplace pensions market and the Local Government Pension Scheme. A raft of measures designed to implement phase one were set out in the Chancellor's maiden Mansion House speech.

The focus of the second phase is thought to be on pensions adequacy and further measures to improve outcomes for pensioners, such as increasing auto-enrolment contributions and the numbers of employees within scope to join such schemes.

The casualty of increased auto-enrolment inclusion from imminent pension reforms has been greeted with general disappointment from many in the industry. However, following the increase in employer NICs due to take effect from April 6, 2025, the Government has postponed imposing the additional expense of a hike in auto-enrolment contributions.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More