Workers could see £6,000 boost to pension pots under Government plans
Millions of workers could see a £6,000 boost to their retirement pots as part of Government plans to double the number of UK pension megafunds by 2030.
Reforms in the Pension Schemes Bill propose that multi-employer defined contribution pension schemes and local government pension scheme pools operate at megafund level, managing at least £25 billion in assets within the next five years.
This could result in an investment of £50 billion in infrastructure projects, which the Treasury hopes will boost the economy and drive up higher returns for savers.
Chancellor Rachel Reeves said: 'We're making pensions work for Britain. These reforms mean better returns for workers and billions more invested in clean energy and high-growth businesses – the plan for change in action.'
The schemes are expected to save £1 billion a year through economies of scale and improved investment strategies, the Treasury said.
Under the reforms, the local government pension scheme will be consolidated, reducing the current 86 administering authorities into six pools.
Deputy Prime Minister Angela Rayner said: 'The untapped potential of the £392 billion local government pension scheme is enormous.
'Through these reforms we will make sure it drives growth and opportunities in communities across the country for years to come – delivering on our plan for change.'
Sir Steve Webb, a former Liberal Democrat pensions minister who is now a partner at consultants LCP (Lane Clark & Peacock), described it as a 'truly a red letter day for pension schemes, their members and the companies who stand behind them'.
He said: 'The Government has clearly been bold in this area and this opens up the potential for this surplus money to be used more productively to benefit scheme members, firms and the wider economy.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Sky News
an hour ago
- Sky News
Man arrested after alleged hit and run on police sergeant in Manchester
A man has been arrested after an police officer was reversed into several times during an alleged hit and run. Greater Manchester Police said the collision happened on Frodsham Street, Rusholme, at 6pm on Friday. A car was reported to have reversed into a sergeant several times, crushing his legs between two vehicles, before leaving the scene. Police said a 41-year-old man was later arrested on suspicion of Section 18 assault, dangerous driving, and failure to stop. He remains in custody. The sergeant has been taken to hospital for treatment of injuries to his legs. They are not thought to be life-threatening or life-changing. Assistant Chief Constable Steph Parker said: "Assaults on officers are wholly unacceptable and take them away from being able to serve and protect the public, which is what they come to work each shift to do." She added an investigation is under way, and thanked "those who have already come forward with information about the incident". She said: "Our priority is the wellbeing of the injured officer, and I wish him a speedy recovery as we look to pursue justice."
BBC News
2 hours ago
- BBC News
Arrest after policeman injured by car in Rusholme Manchester
Greater Manchester Police have arrested a man after a police sergeant was injured in an alleged officer, who has not been named, was hurt when his legs were crushed between two vehicles, the force said.A car "reversed into the officer several times" on Frodsham Street, Rusholme, at approximately 18:00 on Friday. The driver then fled the scene, the force said.A 41-year-old man is in custody and has been arrested on suspicion of assault, dangerous driving and failure to stop, GMP added. Wishing her colleague a "speedy recovery", Assistant Chief Constable Steph Parker condemned any assault on an officer as "wholly unacceptable".These assaults take officers "away from being able to serve and protect the public, which is what they come to work each shift to do", she said in a statement released by Chief Constable Parker added: "This incident is a reminder of the risks that our frontline officers face daily as they go about their duties to keep communities safe and respond to incidents."The GMP sergeant involved in the alleged hit-and-run is being treated in hospital and is not believed to have life-threatening or life-altering injuries. An investigation into the incident is now under people who had already come forward with information, the assistant chief constable asked anyone who had relevant CCTV or dashcam footage to call police on 101.
Wales Online
2 hours ago
- Wales Online
Universal Credit payment boost worth £420 for over one million people
Universal Credit payment boost worth £420 for over one million people The DWP changed how much money can be deducted from your Universal Credit payments and it means one million households in the UK will be better off in 2022 The Department for Work and Pensions (DWP) recently confirmed that over one million households grappling with debt will retain an average of £420 more of their benefits each year (Image: John Myers ) The Department for Work and Pensions (DWP) recently confirmed that over one million households grappling with debt will retain an average of £420 more of their benefits each year, following a change to Universal Credit implemented at the end of last month. The Fair Repayment Rate sets a cap on how much individuals in debt can have deducted from their benefits to repay what they owe. The maximum amount that could be taken from someone's Universal Credit standard allowance payment to repay debt was 25 per cent, but this was reduced to 15 per cent on April 30. This alteration applies to all assessment periods commencing on or after that date and means claimants due their monthly payments from May 30 will benefit from the reduction. It equates to an average of £420 extra a year for 1.2 million of the poorest households, including 700,000 households with children, whilst aiding people to pay down their debts in a sustainable manner. This is part of the UK Government's Plan for Change to put more money into people's pockets and enhance living standards and signifies the Government's initial step in a broader review of Universal Credit to ensure it continues to fulfil its purpose. Chancellor Rachel Reeves introduced the Fair Repayment Rate at the Autumn Budget, as part of wider efforts to elevate living standards, combat poverty, and tackle the cost of living crisis, reports the Daily Record. The Chancellor remarked: "As announced at the Budget, 1.2 million households will keep more of their Universal Credit and will be on average £420 better off a year. This is our plan for change delivering, easing the cost of living and putting more money into the pockets of working people." This comes amid revelations that nearly 2.8 million households experience reductions in their Universal Credit each month to address debts, with the updated rate aiming to balance debt repayment while ensuring individuals can still manage their essential expenses. In an assertion of the government's commitment to worker prosperity, Work and Pensions Secretary Liz Kendall stated: "As part of our Plan for Change, we are taking decisive action to ensure working people keep more of the benefits they're entitled to - which will boost financial security and improve living standards up and down the country." She further emphasised the government's dedication to improving prospects, saying, "We're delivering meaningful change to ensure everyone has a fair chance, the support they need, and real hope for the future." Article continues below The introduction of the Fair Repayment Rate joins a suite of ambitious efforts under the UK Government's Plan for Change, aiming to spark growth and broaden wealth across the nation. Spotlighting employment as a critical escape from poverty, the Labour Government unveiled the Get Britain Working White Paper, setting sights on an 80 per cent employment rate goal through major reforms to Jobcentres, the creation of a new employment and advice service, plus a youth guarantee ensuring young people are either gaining work experience or pursuing education. This is in addition to raising the National Minimum and National Living Wage to ensure that work is financially rewarding.
