The penultimate manifesto review in our series is not a manifesto. It is, instead, called a contract. This is a bit of spin from Reform UK, but is revealing of their admiration for business over traditional politics (Reform UK – Our Contract with You).
Reform UK’s pensions policy is not as detailed as the other parties. There are some surprising absences – no mention of any element of the triple lock on State Pensions makes them an outlier. They do, however, promise a broad pensions review which looks to emulate the success of Australia’s superannuation system.
One interesting proposal is to take utilities back into public ownership but with 50% owned by UK pension funds. It isn’t clear if this would be gifted (e.g. to the LGPS) or would require schemes to invest in utilities at market rates. Either way, it would mark a profound shift in how affected schemes invest.
Finally, Reform UK join Labour and Plaid Cymru in calling for amendments to the Mineworkers Pension Scheme so that scheme surpluses go to mineworker pensioners.
| Policy area | Manifesto text | Comment | Page |
| Pension scheme investments | Launch a new model that brings 50% of each utility into public ownership. The other 50% would be owned by UK pension funds. | It isn’t clear how pension funds would come to own half of utilities. If they are required to pay at market rates, this would be an important shift in how pensions invest. | 17 |
| Pensions review | The current pension system is riddled with complexity, huge cost and poor returns leading to less uptake. Countries like Australia do savings and pensions much better and cheaper than we do and from a much younger age. | Both Reform UK and the Labour Party promise reviews into the pension system in the UK. If Reform UK are looking to the Australian model of defined contribution superannuation schemes, this is likely to lead to consolidation of master trusts into fewer, larger schemes with a focus on lower charges. | 20 |
| Mineworkers Pension Scheme | We accept the Business, Energy and Industrial Strategy Committee 2021 recommendations in full to amend the Mineworkers Pension Scheme arrangements so that all the scheme surpluses accrue to the Mineworkers. | Labour and Plaid Cymru have made the same commitment in their manifestos. | 20 |
About the author(s)
Ian is a London-based professional support lawyer (PSL) legal director. Ian is a member of our pensions and combined human resource solutions (CHRS) teams. He works with clients to solve their employment and pensions law issues. Ian maintains a particular focus on 'crossover' issues that benefit from his understanding of both areas of law.