"The downgrading of the position from Minister to Parliamentary Under Secretary sends a confusing message about the importance of pensions policy in Whitehall"
Richard Harrington was appointed yesterday as Under Secretary of State at DWP, with the Department confirming him as the "new minister for pensions".
Former Minister of State for Pensions in the coalition government, Steve Webb, now Director of Policy at Royal London, said that "the decision by the DWP to make the role of pensions minister a junior ministerial post is a shock".
Webb added: "The DWP are responsible for overseeing the automatic enrolment of ten million workers into workplace pensions, for policy on the multi-billion pound deficits in company pension funds, for making sure that the new ‘pension freedoms’ work effectively and many other pension issues which affect the lives of millions of today’s workers and retired people. These issues should be a central concern for the department going forward.
"The seniority of ministers really does matter, not least in dealings with other government departments such as the Treasury. The DWP has lost a powerful voice in fighting the corner of workplace pensions with the resignation of Ros Altmann. This new decision is a demotion for pensions and sends a worrying signal to all who are concerned about the long-term financial health of the nation.”
RSM head of pensions Ian Bell, commented: "While we wish the current incumbent every success in his new role, the downgrading of the position from Minister to Parliamentary Under Secretary sends a confusing message about the importance of pensions policy in Whitehall - particularly at a time when issues of pension provision have never been higher on the agenda."
Altmann used her resignation letter to push for further pension policy reforms, including a review of DB pension schemes and a reform of women’s state pension age.
She added that "short-term political considerations, exacerbated by the EU referendum, have inhibited good policy-making".
