PensionsJul 18 2016

Webb ‘sorry’ to see Altmann’s stint as pensions minister end

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Webb ‘sorry’ to see Altmann’s stint as pensions minister end

Former pensions minister Steve Webb has said he is “sorry” to see his successor Ros Altmann leave government, saying she challenged “the Treasury view” of retirement saving, and brought a deep knowledge of workplace pensions to the role.

Ms Altmann announced she was standing down as pensions minister on Friday, after just 14 months in the job

While admitting it was “hard to achieve a lot in 14 months”, Mr Webb, who is now director of policy at Royal London, said Ms Altmann’s willingness to question Treasury policies such as the Lifetime Isa was important in preventing the Treasury taking over pension policy altogether.

He also praised Ms Altmann’s knowledge of and commitment to workplace pensions, saying her successors would not bring the same experience to the job.

“We’re now in a situation where everyone in the DWP is new, they will be starting from scratch. While Ros came in knowing what she wanted to do.” He said Ms Altmann was a minister “who ‘gets’ workplace pensions”.

But he said while Ms Altmann came to DWP with “a great campaigning record”, it was “hard to keep that going in parliament”. He added that Ms Altmann’s seat in the House of Lords meant there was no voice for pensions in the lower house.

Dean Mirfin, technical director at Key Retirement, made a similar point.

“Whilst not at all an unexpected departure, the letter from the Baroness highlights what we always knew. Baroness Altmann is at heart a campaigner for what she believes to be right and just and that can never sit right in the world of politics,” he said.

He said that, free from the shackles of government, she might have a “greater platform” through the House of Lords “to continue to focus on what she truly believes”.

Steven Cameron, pensions director at Aegon, said: “Ros brought a refreshing and long term perspective to the government’s pension policy and we hope she will continue to campaign actively for sound pension policy in future.”

But not everyone was as complimentary of Ms Altmann’s record.

Graham Peacock, managing director of auto-enrolment pension scheme Salvus Master Trust, said the former minister had “not covered herself in glory”, and had been “more interested in politics than policy”.

His main criticism was that she had heavily criticised small auto-enrolment master trusts, essentially for being under-regulated, when as minister it was her job to make sure they were properly regulated.

As of Monday morning (18 July) the Prime Minister’s Office had named Damian Green as secreatry of state for work and pensions and Penny Mordaunt was appointed minister of state for department for work and pensions.

Caroline Nokes MP and Richard Harrington MP as the two under secretaries of state for work and pensions, but had not specified which would be pensions minister.

Mr Webb said whoever becomes pensions minister should focus on two issues: the 2017 auto-enrolment review, and what he sees as Treasury’s gradual takeover of pensions policy.

“The auto-enrolment review is a big thing for the department. It is absolutely vital it addresses the issue that 8 per cent contribution rates are not enough.”

As for Treasury, he said: “DWP needs to stand up to Treasury and its constant tinkering with tax relief. Isas are Isas and pensions are pensions.”

james.fernyhough@ft.com