Guy Opperman has become the UK’s third pensions minister in a little over two years as Theresa May puts the finishing touches to her new cabinet.
The member of parliament for Hexham, who also has responsibility for financial inclusion, replaces Richard Harrington, who has been moved to the department of business, energy and industrial strategy in the reshuffle.
Harrington held the position for 11 months, just shy of the 14 months that his predecessor Ros Altmann clocked-up.
Opperman (pictured), a barrister, amateur jockey and brain tumour survivor, will report to new work and pensions minister David Gauke.
Hymans Robertson partner Chris Noon would like the new pensions team to put tax relief, the triple lock and DB pensions at the top of their in-tray.
“The current pension tax relief ‘mess’ is simply not sustainable and we’d like to see a fundamental review of long-term saving incentives that genuinely encourages all individuals to save for retirement and long-term care,” Noon said.
The annual allowance tapers may have boosted government finances but the complexity of the system is a disincentive for pension saving for high earners and their employers. “This needs simplification,” he added.
Noon wants the triple lock to remain now that the state pension changes introduced in April 2016 have cut costs. He also wants to see legislation introduced that will save pensions from another BHS-type scandal, which was muted by Theresa May before the general election but will be difficult to get through parliament with the number of seats that the Tories have.
Barnett Waddingham senior consultant Malcolm McLean is concerned at the impact that Harrington being moved on after less than a year will have on pension policy.
“Ever since the post of pensions minister was established, we have seen constant change – up to the appointment of Steve Webb, who remained minister for a full five-year term,” he said. “Pensions is an important area for so many people and continues to suffer from constant change and increased complexity.”
Also stressing the need for stability is Old Mutual Wealth head of retirement policy Jon Greer. He described the role of pensions minister as a “game of musical chairs” with 12 ministers appointed since the turn of the century.
He points to Steve Webb delivering auto-enrolment during his five-year stint as proof that stability creates continuity.
“Only the football management merry-go-round can compete for short-lived appointments, although even Liverpool, Manchester United and Arsenal combined have only had 11 managers between them in the same period,” he added.
Greer would also like the see some clarity over savings policy, such as the role of the Lifetime Isa and ensuring the self-employed save for retirement.
He calls for a cross-party independent commission to help tackle these and other long-term pension issues, which have a ripple effect across generations.
“Savers and the pensions industry can’t afford for government to make mistakes on key pensions policy and establishing a consultative approach to policymaking via an independent commission would be responsible step for any government to take if they are serious about building a healthy and sustainable savings culture,” Greer says.
