DWP says controversial new pension rule 'no longer' on Labour agenda

DWP 's Julian Barker, head of policy collective defined contribution, costs and charges, and decumulation, has confirmed that the lifetime provider model is no longer at the top of the government’s agenda.

The Department for Work and Pensions has confirmed a "pot for life" plan is "no longer" on the new Labour Party government's agenda. The DWP 's Julian Barker, head of policy collective defined contribution, costs and charges, and decumulation, has confirmed that the lifetime provider model is no longer at the top of the government’s agenda.

Asked whether it is fair to say that the lifetime provider model, or pot for life as it has also been known, is no longer on the top of the queue for the government at the Pensions and Lifetime Savings Association’s (PLSA) annual conference in Liverpool, Barker said: “I can give a very short answer – which is ‘yes’”.

The lifetime provider model was introduced last November by the then chancellor of the exchequer Jeremy Hunt in a bid to “simplify the pensions market”. Former Conservative Party MP Hunt announced a consultation to introduce the option for workers to set up a “pension pot for life” as part of his Autumn Statement.

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These reforms would allow people the ask their employer to pay their pension contributions into the pension of their choice. It would lower the risk of people having multiple, smaller pension pots, and losing track of their retirement cash. Helen Morrissey said: "This could go a long way towards solving the issue of lost pensions and puts the member firmly in control of their own pension planning. It will, however, take some time to work through so we would not see them introduced any time soon.

"The good news is that you can take steps today to take control of your pensions. Using the Pension Tracing Service to track down lost pensions could leave you much better off in retirement and you can make them easier to manage by consolidating them into a pension such as a SIPP that offers you more options."