Labour's plans for DWP state pensions, triple lock and 'mandatory' retirement age

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Following Labour’s landslide victory in the general election the new government will now look to implement their vision for the country.

Ahead of the election, new Prime Minister Sir Keir Starmer outlined the party’s plans once in power in their manifesto titled ‘Change’. The manifesto covers policy on issues including benefits, defence, housing and the cost of living crisis.

Among the plans outlined in the manifesto is what the Labour Party intend to do with pensions – including a new ‘mandatory’ retirement age for some politicians.

READ MORE:They’ve been told change is coming – but locals aren’t convinced

For the changes to become law they would need to be approved in Parliament. Here are the key points on pensions from Labour”s manifesto:

Increase investment from pension funds and review

According to the manifesto Labour will look to increase investment from pension funds in UK markets. Reforms will be introduced to ensure ‘workplace pension schemes take advantage of consolidation and scale’. Labour will also undertake a review to see what steps are needed to improve pension outcomes.

The manifesto says: “We will adopt reforms to ensure that workplace pension schemes take advantage of consolidation and scale, to deliver better returns for UKsavers and greater productive investment for UK PLC. We will also undertake a review of the pensions landscape to consider what further steps are needed to improve pension outcomes and increase investment in UK markets.”

Changes to Mineworkers’ Pension Scheme

Labour will implement changes which will affect those on the Mineworkers’ Pension Scheme – a pension scheme for miners which sees the government entitled to half the surplus cash.

In the manifesto, the party say: “Labour will end the injustice of the Mineworkers’ Pension Scheme. We will review the unfair surplus arrangements and transfer the Investment Reserve Fund back to members, so that the mineworkers who powered our country receive a fairer pension.”

Retain triple lock

Labour has pledged to retain the triple lock for state pensions. This means the annual pension increase in April each year will either match the rate of inflation, average earnings or 2.5% – whichever is highest

In the manifesto, Labour say: “Our system of state, private, and workplace pensions provide the basis for security in retirement. Labour will retain the triple lock for the state pension. We will also adopt reforms to workplace pensions to deliver better outcomes for UK savers and pensioners. Our pensions review will consider what further steps are needed to improve security in retirement, as well as to increase productive investment in the UK economy.”

Mandatory retirement age in House of Lords

While not a change that will impact the majority of people, Labour has pledged to introduce a mandatory retirement age to the House of Lords, as part of its plans to ‘modernise’ the chamber. It would mean that at the end of the Parliament which a member reaches 80 years of age, they will be required to retire from the House of Lords.

Other changes for the House include the removal of the right of hereditary peers to sit and vote in the House of Lords.

The manifesto says: “Although Labour recognises the good work of many peers who scrutinise the government and improve the quality of legislation passed in Parliament, reform is long overdue and essential. Too many peers do not play a proper role in our democracy.

“Hereditary peers remain indefensible. And because appointments are for life, the second chamber of Parliament has become too big.”

Speaking in her first speech, new Chancellor Rachel Reeves said: “We will work closely with our national, regional and local leaders to power growth in every part of Britain.

“And we will turn our attention to the pensions system, to drive investment in homegrown businesses and deliver greater returns to pension savers.

“I know the voters’ trust cannot be repaid through slogans or gimmicks – only through action, only through delivery.

“The Treasury I lead is proceeding on that basis.”

Patrick Heath-Lay, chief executive of People’s Partnership, which provides the People’s Pension, said Labour face a key challenge on day one of government.

Discussin Labour’s pension plans, he said: “I hope that Labour’s pensions review will help revitalise the consensus that drove forward the success of automatic enrolment and create a roadmap for the future.”

He added: “There are also ‘day one’ challenges for the new ministerial team. The pensions dashboard programme (an initiative which will eventually enable people to see all their pensions in one place online) is making progress, but ministers must address key project documents which still require approval, and this must happen quickly if larger schemes are to connect to the dashboards’ infrastructure in April.”