Millions of workers warned Labour playing 'fast and loose' with their pensions
The Labour Party government has been warned over changes allowing companies to invest surpluses from defined benefit pension schemes. Unite has warned workers must have a say in decisions about surplus pension investments.
"These proposals may have some benefits, but it is essential that nothing is done which allows employers to play fast and loose with workers pensions," said Unite general secretary Sharon Graham. "The Maxwell scandal must never be repeated," she added.
"Any decision on investing surplus pension funds needs to be made with representatives of the workers who pay into the funds," she said. "And it is essential that workers benefit from those investment decisions. We can't have any loopholes which allow employers to squirrel away profits for themselves," Graham added.
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"The most important challenge for the government in this area is not changing the rules on the investment of surpluses," she said. "Defined benefit pensions are by far the best way to ensure that workers enjoy a financially secure retirement," Graham continued.
"So, the big question is how to get employers to stop closing these schemes and start opening new ones. The union believes new policies and regulations are needed to ensure more companies provide these pension arrangements."
Chancellor Rachel Reeves said: "I know this government and businesses are united on growth being the top priority for our economy, which is why I am fighting every day to tear down the biggest barriers to growth, taking on regulators, planning processes and opposition to this urgent mission."
Labour Party Prime Minister Keir Starmer added: "The number one mission of my government is to secure growth, drive higher living standards for everyone, and get more money into people’s pockets. To achieve the change our country needs requires nothing short of rewiring the economy. It needs creative reform, the removal of hurdles, and unrelenting focus. Whether it’s how public services are run, regulation or pension rules, my Government will not accept the status quo.
"Today’s changes will unlock billions of investment, pushing forward in delivering my Plan for Change."