Election 2024 – Green Party manifesto and pensions

The third of our series of manifesto reviews focuses on the Green Party. Their manifesto (Green Party – Real Hope. Real Change. Manifesto 2024) only has a handful of promises in relation to pensions, but they are by far the most radical that we’ve seen so far.

Summary

Disinvestment from all fossil fuel investments by 2023. A new flat rate of pensions tax relief equal to basic rate income tax. Removing the minimum fixed increase from the triple lock (but retaining a double lock linkage to inflation and earnings). Worker status for all gig economy workers. In just the first two pension policies, the Green Party have packed in what would amount to a radical reshaping of the pensions system with big changes to pensions tax relief and a material shift on investment duties.

Some commentators have highlighted that the limited policy detail in the manifesto suggests that the radical nature of these promises has not been fully considered. In the context of the manifesto as a whole, however, it seems that they are – it is an intentionally radical approach.

Policy area	Manifesto text	Comment	Page
State Pension – triple lock	Ensure that pensions are always uprated in line with inflation and keep pace with wage rises across the economy.	This downgrades the State Pension triple lock to a double lock by removing the minimum increases of 2.5%.	19
Pensions taxation	Equate the rate of pension tax relief with the basic rate of income tax to help fund … social care.	This would reduce the level of pension tax relief available to people who pay higher rates of income tax than the basic rate. This, or similar policies, have been discussed as ways reducing the cost of providing pensions tax relief. Typically, policy proposals have suggested a flat rate of 25% (i.e. above the basic rate but below the higher rate) as a way of boosting pension savings for lower earners.	20
Gig economy workers and automatic enrolment	Bring platform [gig economy] workers under a single legal status of ‘worker’, with full and equal rights from the first day of employment.	Status as a worker would, unambiguously, bring gig economy workers within the scope of the automatic enrolment regime under the Pensions Act 2008.	17
ESG	UK pension funds will need to remove fossil fuel assets from their investment portfolios, securities transactions and balance sheets by 2030.	This goes far beyond the current requirements (TCFD disclosure based on investments against the Paris Agreement standards). It goes further than the Paris Agreement requirements. This would be a major change requiring primary legislation.	14