Pensions in play: Autumn Budget, Reform pressure, and political shifts

After a brief summer pause, we return to a political landscape that feels anything but restful. Keir Starmer’s reshuffle, prompted by Angela Rayner’s resignation was swift and strategic. Pat McFadden now leads the Department for Work and Pensions, while Torsten Bell retains his role as Pensions Minister a continuity that may prove critical as we approach the Autumn Budget. Bell’s dual role in shaping pensions policy and preparing the Budget for Chancellor Rachel Reeves places him at the heart of decisions that could redefine retirement planning for millions. 

Meanwhile, the Reform Party continues to shape the political weather. Their rise in local government has been matched by a growing interest in pensions policy particularly the Local Government Pension Scheme (LGPS). 

Deputy Leader Richard Tice has stirred debate by calling for the LGPS to reduce the “frankly egregious” fees it pays fund managers by moving assets into low-cost global equity index and bond trackers. The party had done its own analysis of LGPS performance, based on the 13 administering authorities where it has more councillors than any other party, benchmarking it against passive global equities and global bond trackers – and claimed it had underperformed by an average of 1.9 per cent a year since 2019. 

Tice also accuses LGPS and individual funds of "investing in woke things” reiterating his anti-renewable energy and anti-net zero stance. At a fringe event at the Reform Party Conference, Tice singled out the Local Government Pension Pools, such as Border to Coast for their investment approach. 

Industry voices, including Pensions UK and John Ralfe have challenged the validity of Reform’s analysis, warning against politicising investment strategy without robust evidence. As Reform gains influence, the risk is that pensions become a political football, with investment decisions driven by headlines rather than outcomes. 

Then there’s the Autumn Budget. With speculation mounting over how the Chancellor will address the fiscal deficit, pensions are once again in the spotlight. The surge in tax-free lump sum withdrawals up 60% year-on-year reflects growing anxiety over potential changes. The current allowance of 25% (capped at £268,275) may not be untouchable for long. If reduced, it could reshape retirement behaviours and financial planning across the board. 

Amid this uncertainty, one issue remains constant: pensions adequacy. DWP’s recent research shows that 56% of people aged 40–75 lack a clear plan for accessing their pension. Trustees have a vital role to play not just in aligning messaging and reviewing decumulation options, but in engaging with regulatory consultations and shaping how guidance is delivered in practice. 

As political influence over pensions grows, the sector must stay vigilant. Trustees and providers have a duty to ensure decisions are focused on savers’ long-term needs. 

Total mentions by topic (July– August)

Pensions funding and deficit saw the greatest number of mentions between the months of July and August with 422 stories, followed by State Pensions with 246 stories.