Key messages
Some Bills with pensions implications have, it seems, been lost and proposed pensions legislation delayed; and
If the Election results in a change in government, some proposals may lapse and significant new proposals could emerge.
What is happening to Parliament?
Following the 22 May 2024 General Election announcement, the timetable is in outline as follows:
Close of business 24/5/2024 – Parliament prorogued
30/5/2025 – Parliament dissolved
4/7/2024 – General Election
10/7/2024 – Parliament sits for formal business
17/7/2024 – State Opening of Parliament
25/7/2024 – Summer Recess starts
2/9/2024 – Summer Recess ends and Parliament restarts (unless Parliament recalled earlier)
September 2024– Parliament sits for a few weeks and then goes into recess for Party Conferences
In essence, Parliament will not fully return to business until October 2024!
What is the impact on Bills in Parliament?
The Data Protection and Digital Information Bill which had made good Parliamentary progress has been lost. It remains to be seen whether it will be reintroduced and in what form.
The position seems to be similar with the Economic Activity of Public Bodies (Overseas Matters) Bill.
Impact on Pending Regulations?
Outstanding Regulations are delayed. Click here to see our comments in Pensions Ready Reckoner in Part 5 of this Pensions Compass.
Of particular note are Regulations which we understand HMRC wish to make. These relate to further amendments/corrections to Finance Act 2024 (under which the Lifetime Allowance was abolished and the new Lump Sum Allowance and Lump Sum and Death Benefit Allowance introduced). Please see our further comments below.
The Opposition’s views on progressing the growing list of other expected Regulations is unknown including the GMP Conversion Regulations, Notifiable Events Amending Regulations, and Regulations to broaden the scope of auto – enrolment.
New Primary legislation?
It remains to be seen whether, if the current Opposition, is elected they will carry forward, modify or abandon the present Government’s ambitious pensions reform programme eg reforming the law relating to surplus in DB schemes, and measures to encourage more pension fund investment in UK entities.
In particular, the Opposition is on record in Parliament as saying they will repeal the New Lump Sum Allowances introduced under Finance Act 2024 on 6 April 2024 and will reinstate the Lifetime Allowance. Whether this will actually happen remains to be seen. Latest reports indicate the Opposition may not proceed to reinstate the Lifetime Allowance because this would add to uncertainty and be complex to reintroduce.
Other matters
Will the Opposition if elected continue with the present timings for Pensions Dashboards, or seek to revisit these? Another unknown.
In accordance with past precedent and reflected in the General Election Guidance 2024 issued to the Civil Service on 23 May 2024, the impartiality of the Civil Service must be maintained during the Election period.
Accordingly save in exceptional circumstances only routine Government business will continue during this period. Matters of Policy on which a new government may be expected to want the opportunity to form a different view should be postponed until after the Election, unless postponement would be detrimental to the national interest or wasteful of public money.
Generally, no new public Consultations should be undertake by government departments during the Election period. Existing Consultations can be continued but continuing publicity concerning such Consultations is banned. There may be instances of the duration of an on – going consultation being extended.
Conclusion
Hopefully a welcome degree of consensus on pensions will be reached between an incoming Government and its predecessor.
However of particular concern is the differences between the Parties on the Government’s abolition of the Lifetime Allowance. There are and to an extent continue to be difficulties in understanding and applying the New Allowances introduced by Finance Act 2024. To have yet another legislative re-write, and perhaps another set of transitional provisions, is a nightmare scenario for members, trustees, employers, administrators and advisers. Belatedly it seems the Opposition have recognised this – please see our above comments.