David Gauke has been put in charge of the government’s retirement policy after Theresa May made him work and pensions minister in her cabinet re-shuffle.
But the member of parliament for South West Hertfordshire takes over the department during a period of uncertainty.
The hung parliament that resulted from 8 June’s general election means that planned reforms to many areas of pensions, such as the triple lock and tax relief, could be delayed or abandoned as May works to form a coalition government.
Gauke (pictured) has spent the past seven years working at the Treasury, rising to the post of chief secretary. He replaces Damian Green, who vacated the role after a year to move up to first secretary of state and minister for the cabinet office.
Gauke’s appointment was welcomed by Steve Webb, who held the position for five years until 2015.
“There are few ministers who could have been appointed to this role who know as much about pensions as David Gauke,” he said, pointing to his work developing the pension freedoms during his time at the Treasury.
Webb, however, fired a warning that this is a difficult time to be in charge of pensions. “The lack of an outright Conservative majority means radical reform in any area will be hard to get through Parliament, but we may see sensible incremental changes as a result of the review of automatic enrolment.
“As a former chief secretary to the Treasury he will be used to focusing on keeping spending under control, but political pressures may mean savings on the triple lock and on winter fuel payment have to be kicked into the long grass.”
The Pensions Management Institute also welcomed Gauke’s promotion. President Kevin LeGrand said Gauke brings the qualities and experience needed for the position in view of the reduced role of the pension minister.
“With key issues such as pensions tax relief, one of Mr Gauke’s particular areas of expertise, currently subject to review, the uncertainties over pension savings, will unfortunately continue,” LeGrand added.
“This may be particularly true in light of the hung parliament situation which means that policy continuity may nevertheless have to be compromised,” he said.
