The appointments of Iain Duncan Smith and Steve Webb cast doubt on the future of the planned reforms, with the latter having frequently expressed reservations over the package, while the Conservatives are known to be dubious of the National Employment Savings Trust (Nest).
Pensions minister Webb is also a long-time and vociferous supporter of making state provision the primary source of retirement income, while work and pensions secretary Duncan Smith’s background is in welfare reform, as head of thinktank the Centre for Social Justice (CSJ).
In an article in PM (March), Webb argued “governments should not be trying to interfere too much” in private sector pensions, having previously said “I don’t care” whether Nest take-up is great or small.
Webb wrote: “Getting state pension right is a prerequisite for any pension policy. Stopping the rot on the basic pension is the first step towards restoring sanity in pensions.”
But he has repeatedly called for the basic and second state pensions to be increased to a level that would make means-tested benefits for retired people unnecessary.
The CSJ has never conducted research into private sector pension provision, but a spokesman confirmed it will shortly publish a report on retirement, including a review of the state pension.
