Election 2024 – Labour Party manifesto and pensions

The third of our series of manifesto reviews focuses on the Labour Party. Their manifesto (Labour Party – Change – Manifesto 2024) will receive greater attention than many of the others given the current polling and predictions for the outcome of the General Election.

Summary

Somewhat ironically for a document that is simply and unambiguously titled ‘Change’, this is the one manifesto (including the Conservatives’ own manifesto) that promises the greatest continuity with the current government’s pensions policy. So much so, that rather than change, the Labour Party could have lifted whole chunks of text on workplace pension investments in productive finance, consolidation and value for money from the government’s Economic Growth Agenda (i.e. the Mansion House pension reforms).

The only material departure from the current government’s pensions policy is stepping up ESG requirements, mandating pension funds to develop and implement credible transition plans that align with the 1.5°C goal of the Paris Agreement.

As we heard earlier in the campaign, the Labour Party have rowed back on earlier pledges to reverse the abolition of the lifetime allowance. There is no mention of pension taxation at all.

Policy area	Manifesto text	Comment	Page
Scheme investments – productive finance	Act to increase investment from pension funds in UK markets. Adopt reforms … to deliver better returns for UK savers and greater productive investment for UK PLC. Undertake a review of the pensions landscape … increase investment in UK markets.	The text in the Labour Party manifesto could have been lifted from the Mansion House speech and subsequent Economic Growth Agenda policy statements and consultations. The same questions that have been raised in relation to the Conservative government’s plans will apply to the Labour Party’s plans. If Labour are returned with a majority, they will, at least, have the prospect of a five-year term to implement reforms.	29 and 79
Consolidation and value for money	We will adopt reforms to ensure that workplace pension schemes take advantage of consolidation and scale to deliver better returns for UK savers and greater productive investment for UK PLC. Undertake a review of the pensions landscape … on steps needed to improve pension outcomes.	Again, strong echoes of the government’s current pensions policy in the Labour Party’s manifesto. The document does not go into depth on consolidation, but there are five possible strands to this focus: – consolidation of LGPS pooled funds; – consolidation of LGPS funds; – consolidation in the DC master trust market; – developing / backing the roll out of master trust-based collective defined contribution schemes; and/or – encouraging / facilitating DB scheme consolidation (e.g. via a public sector consolidation vehicle).	29
State Pension – triple lock	Labour will retain the triple lock for the state pension.	This retains the status quo on the annual increasing of the State Pension.	79
Pensions taxation	No specific provision.	This marks the departure of the Labour Party from previous statements on reversing the abolition of the lifetime allowance.	N/A
ESG	Mandate pension funds to develop and implement credible transition plans that align with the 1.5°C goal of the Paris Agreement.	This goes beyond current TCFD disclosure requirements, with a focus on implementation of green investment targets.	57

There is also a specific policy commitment on the Mineworkers Pension Scheme:

“Labour will end the injustice of the Mineworkers’ Pension Scheme. We will review the unfair surplus arrangements and transfer the Investment Reserve Fund back to members, so that the mineworkers who powered our country receive a fairer pension.”