Cicero Policy Briefer

Issue 6, November 2006

Anticipation building over pensions reform

By Iain Anderson

We haven't had the Queen’s Speech, nor the second Pensions White Paper. We haven't even had the Pensions Bill itself. Yet momentum around the reform package has gathered renewed pace in recent days.

A speech by DWP Minister of State James Purnell MP earlier this week indicated that Government plans for a Personal Accounts Delivery Authority were advancing alongside plans for radical reform of state provision: two moves which seem to show that the Government now wants to press on with reform at all speed.

All this begs some significant questions around the likely shape and content of the Parliamentary passage of the legislation alongside its final content. We know that frontbenchers from the Opposition parties increasingly say they are not being brought into the fold on many of the reforms—despite calls from all parties for a consensus.

However, the really surprising call by Purnell is the commitment on State Reform. At the time of the launch of the first White Paper in May, the DWP was careful to place a caveat in its commitments towards State reforms—by identifying that these would only be possible in the context of the wider public finances.

This is why, in advance of the coming Comprehensive Spending Review led by the Treasury (which will look at all the Government's spending priorities), it is all the more surprising that the commitment to State reform is so clearly stated.

Surprising—and positive. But there is a long way to go before Pensions Bill 2007—a long journey which will is likely to include a handover to the Chancellor and towards new priorities.

Iain Anderson can be contacted on +44 (0)20 7665 9532 or click here to email.

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