One of the major developments in the last quarter was Iain Duncan Smith’s announcements of radical pensions reform.
The Secretary of State for Work and Pensions said: “Over the years small changes to the state pension system have turned what started as a relatively simple contributory system into a complex mess, leaving people utterly confused as to what the state pension means for them.”
“We have to send out a clear message across both the welfare and pension system: you will be better off in work than on benefits and you will be better off in retirement if you save.”
The Secretary of State is keen to simplify the state pension regime, which is currently made up of a combination of basic pension and means-tested top-ups. Mr Duncan Smith wants to replace this with a single state pension entitlement of £140 a week.
Clearly, this reform is in its early stages but we will report on it further as it develops.
