The UK government today announced the re-establishment of the Pensions Commission, first set up by Tony Blair’s administration back in 2002. This new policy is an important step towards solving the ever-deepening savings crisis experienced by millions of Britons. Social Security Liz Kendall, the Secretary of State for Work and Pensions, is at the forefront of efforts to re-establish the commission. This new endeavor will include heavyweights from the inaugural body as well as leading experts on public policy.
The Pensions Commission would be returning at an important juncture. The country cannot afford to ignore an aging population and increasingly ominous concerns about retirement security. One paean to the new commission would illustrate Jeannie Drake, former member of the original commission. She’ll be accompanied by Ian Cheshire, former chair of Barclays UK, and Nick Pearce, professor of public policy at the University of Bath. Together, they’ll advance ideas that meet the guidelines with the best proposals slated to be funded as soon as 2027.
Torsten Bell, the pensions minister, emphasized the significance of the original Pensions Commission’s work, stating that it “helped get pension saving up and pensioner poverty down.” The government hopes that the proposals generated by this revived commission will gain cross-party support, facilitating their enactment beyond the current parliamentary session.
The aim of the relaunched Pensions Commission is clear: to “tackle the barriers that stop too many saving in the first place,” according to Liz Kendall. The commission will consult widely to explore all aspects of the pensions system. Like us, their aim is to make sure that today’s workforce can retire with dignity.
Alongside bringing back the Pensions Commission, the government has launched an independent review into the state pension age. Right now the retirement age is 66 for everyone, men and women alike. Beginning in May 2026, it is expected to gradually raise it to 67. This adjustment, consistent with national demographic changes, will help ensure that the pension system remains sustainable for the long term.
Bell, in fairness, has been reluctant to endorse the notion of bringing the commission back to life. Earlier this year, he dismissed those recommendations without merit. He’s arguing that this new initiative should be the most important one of all. It would provide greater security that future generations will retire with sufficient savings.
The commission is preparing to take another look at that framework. We know that’s what their ultimate aim is, to build a system going forward that’s resilient, equitable and green. This holistic approach aims not just to increase pension saving levels, but to combat the increasing number of pensioners living in poverty.
The potential for cross-party collaboration on these proposals may reflect a growing consensus on the need for reform within the pensions landscape. Both Labour and other political entities recognize that addressing this issue is crucial for providing financial security to an aging population.