" Who will replace her and how long they will last is anyone’s guess, particularly given the growing risk of a no-confidence vote. "
McVey said the Brexit deal "does not honour the result of the referendum" and "threatens the integrity of the United Kingdom".
She said it had been "a huge honour" to serve as Secretary of State for Work & Pensions, but her departure leaves concerns over the future of retirement policy including the state-pension, gaps in auto-enrolment and the launch of the pensions dashboard.
Jon Greer, head of retirement policy at Quilter, commented: "Brexit’s knock on impact to the rest of sensible policymaking unrelated to the departure from the EU continues as ministers line up for the door, leaving a political vacuum. Esther McVey’s departure after just 10 months in her position is unsettling, particular since she evidences the lack of faith in Theresa May’s leadership. Who will replace her and how long they will last is anyone’s guess, particularly given the growing risk of a no-confidence vote.
"Leadership at the DWP has been about as stable as a mobile home in a hurricane as a parade of ministers have picked up the baton only to fling it away. Setting retirement policy and ensuring we have a well-functioning state pension system is a long-term project which is put at risk if the minister responsible for the DWP changes from one year to the next.
"Those planning ahead for their retirement need certainty and stability when it comes to government policy so that they can make informed financial planning choices. There are some big ticket issues that cannot be ignored for much longer, such as the future of the state-pension, gaps in auto-enrolment and the pension dashboard among many others. However, it seems all this will continue to be on the backburner as Brexit sits center stage at Westminster."
Steve Webb, director of policy at Royal London and former pensions minister, said: “Whoever succeeds Esther McVey at the Department for Work and Pensions will have a lot to do as they continue work on Universal Credit and disability benefits. As a result, they will have little time to shape pensions policy. With this in mind the key people shaping pensions policy will remain Treasury and the DWP’s pension minister.”
