Torsten Bell, the MP for Swansea West, has been named as the new pensions minister, succeeding Emma Reynolds.
Bell has a joint ministerial role across both the Department for Work and Pensions and HM Treasury.
The announcement was met with positivity by Jon Greer, head of retirement policy at Quilter, who said Bell’s appointment as a joint secretary signals Labour’s intention to place pensions policy “at the heart of its economic agenda.”
Greer also noted that Bell’s background as an economist and his tenure as chief executive of the Resolution Foundation provides him with a “solid background” for the pensions brief and will enable him to grasp the complexities of the sector.
“His dual appointment across Treasury and DWP reflects the broader implications pensions have for the economy and the public finances. Labour’s commitment to the state pension triple lock, despite fiscal constraints, will test his ability to deliver on manifesto promises while ensuring long-term sustainability,” he commented.
However, Greer said that Bell’s appointment also underscores the issue of a revolving door of pensions ministers, with four pensions ministers taking on the role in just over two years.
“This role, pivotal to the retirement prospects of millions, has seen a succession of short-lived appointees, each struggling to leave a meaningful legacy. The pensions industry is eager for a minister who can combine vision with execution and remain in post long enough to deliver meaningful reform,” he added.
Zoe Alexander, director of policy and advocacy at the Pensions and Lifetime Savings Association, also welcomed Bell’s appointment.
“Torsten is already well known and respected within the pensions industry. We are optimistic that he will bring the leadership that is needed to make progress on both phases of the Pensions Review and look forward to working with him to continue to deliver a system that is adequate, affordable and fair, in the interests of UK savers,” she said.
However, Kate Smith, head of pensions at Aegon, said Bell will have “his hands full” as he navigates the pensions agenda.
Smith said: “We welcome Torsten Bell’s appointment as new pensions minister. Bell’s appointment is unlikely to ‘ring’ in any immediate pension changes to the Government’s pension and growth agenda given most initiatives bear the Treasury footprint where Reynolds now resides.
“Bell will have his hands full due to the extremely busy and ambitious pensions agenda, including the ‘Unlocking the UK pensions market for growth’ and the Pension Schemes Bill.
“Although this is a change in Ministerial leadership, we expect little change in the strategic policy direction. But we would welcome clarity on when the Government will return to the ‘adequacy’ phase of its Pensions Review. This is also an opportunity to carry out a review of all the policy initiatives in flow, considering the sequencing which works best to deliver the government’s objectives without causing customer confusion or market chaos,” Smith added.
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