Emma Reynolds: New Pensions Minister with dual role across both the Treasury and Department for Work and Pensions
Emma Reynolds is the new Pensions Minister, with a dual appointment that means she will work for both the Treasury and Department for Work and Pensions.
The new twin role for the Labour MP for Wycombe was welcomed by pension industry experts, who voiced hope it would prompt a more joined-up approach to pension policy.
Reynolds returned to parliament at the election, after previously serving as the MP for Wolverhampton North East between 2010 and 2019.
This included stints as shadow minister for foreign affairs and later housing, and as shadow Communities and Local Government Secretary, up until 2015.
After she lost her Wolverhampton seat in 2019, Reynolds became public affairs and policy boss at finance industry lobby group TheCityUK.
Labour is planning a major review of pensions, and we already took a look at what that might mean for pension tax relief, plans for using people’s retirement savings to help boost economic growth, the state pension and more.
This is Money readers will also be hoping Reynolds gets a grip on administration and customer service problems at the DWP, following underpayment scandals, and long delays to processing state pension top-ups and resolving other issues.
Readers repeatedly complain that when they ring the DWP, call centre staff make empty promises that concerns will be dealt with but are then ignored.
Other matters that Reynolds will have to grapple with include the long delayed pension dashboard, implementing an expansion of auto enrolment to young and low-paid savers, the timing of a state pension age rise to 68, and whether to compensate the Waspi women.
Raynolds replaces Tory MP Paul Maynard, who was appointed Pensions Minister last November.
He took over from colleague Laura Trott MP, who oversaw publication of the first official measure of the gender pensions gap, and resolved a long running mess where innocent child benefit errors led to parents standing to lose tens of thousands pounds in state pension.
Steve Webb, a former Pensions Minister during the Tory-Lib Dem coalition years and now This is Money’s retirement columnist, says: ‘There is much to be said in favour of a ministerial role which spans both HM Treasury and the Department for Work and Pensions.
‘In the past, the two departments have not always been “joined up” when it comes to pensions policy, with Treasury changes to pension tax relief sometimes undermining DWP efforts to boost pension saving.
‘With a combined appointment there is the opportunity for decisions on pensions to take full account of the whole pensions landscape.’
But Webb, who is also a partner at LCP, adds: ‘One risk however is that the Treasury desire to see pension assets used to promote economic growth at a macro level could mean that the individual member perspective gets less attention than it should.
‘This is something that the new minister will have to guard against.’
Rachel Vahey, head of public policy at AJ Bell,says: ‘The area of pensions has always sat, somewhat uncomfortably, between two masters.
‘The DWP is responsible for paying state pensions and the regulations for occupational schemes.
‘But ultimately it was always the Treasury that had the upper hand, with control over the financials – setting pensions tax rules and the level of state pensions.’
She went on: ‘Historically, pensions ministers and Treasury ministers have had to rub along together, both having a say in people’s income in later life.
‘But in a breath of fresh air, the new Labour government is seeking to ease this tension by appointing a minister that has a foot in both camps and should have the clout in both departments to get things done.’
Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, says: ‘Emma Reynolds’s appointment brings enormous hope of bringing a more joined up approach to pension policy across both Treasury and DWP.
‘For years the split has caused frustration and bringing in someone who spans both departments can do much to make policy more coherent.’
She says of Labour’s pension review: ‘We are expecting this to include further moves towards consolidation of the industry as well as a focus on how pensions investment can support the Government’s growth mission.
‘Reynolds can also use the review to unwind the increasingly tangled pension tax system – stepping away from years of tax tinkering and bringing the long-term certainty people need to make plans.
‘Mention also needs to be made of state pension – the foundation of people’s retirement income. However, the increasing bill stokes concern that it may not be around in the future.
‘A plan needs to be put in place that puts the state pension on a stable footing and brings certainty as to what people will receive and when.’
Jon Greer, head of retirement policy at Quilter, says: ‘Despite being out of government for 14 years, Labour has opted for an experienced parliamentarian as its Minister for Pensions, with the appointment of Emma Reynolds.
‘While she has little pensions experience to speak of, she has previously served in parliament for nearly a decade prior to her re-election last week.
‘Furthermore, her most recent experience being at TheCityUK financial services trade association should give her a good starting point from a knowledge perspective and provide potential to grow into the role.
‘With experienced hands such as two-time Minister for Pensions Sir Stephen Timms also being appointed at the Department for Work and Pensions, we hope this will give stability to an industry that is so vital to the health and economy of this nation.
‘This appointment does give the view that Labour will treat pensions with the thought and consideration that is required, not least because the role is a joint appointment with the Treasury and DWP.’