Topic: Government Policy

People’s Pension responds to Pensions Commission consultation

Patrick Heath-Lay, CBE, Chief Executive Officer for People’s Pension1, said: “The Commission is right to recognise that the UK’s main pensions challenge is improving the adequacy and fairness of the pensions system in the context of an ageing society. This is fundamentally different to the challenge faced by the first Pensions Commission. The challenge now is to improve retirement outcomes while ensuring the long-term sustainability of the pensions system as demographic change places increasing pressure on public finances.

“Of these three priorities sustainability must be tackled first as it bridges pensions policy and public spending, creating the strongest foundation for reform. As the issue of pensions savings inadequacy gathers pace, the challenge will be to improve outcomes from the UK’s pensions system while managing the increasing fiscal pressures associated with both pensions and healthcare.

“Our view is that preserving a universal flat-rate State Pension that retains its value over the long term should remain a cornerstone of the UK’s pensions system, complemented by higher levels of private saving to better insulate future retirees from the fiscal pressures that are likely to emerge over the coming decades. Alongside this, the Commission has an opportunity to provide greater clarity on what pension adequacy looks like and to set a clear long-term direction for how it can be achieved. That should include strengthening automatic enrolment over time, bringing younger and self-employed workers into pensions saving earlier and ensuring savers are better supported to convert their pension pots into sustainable retirement income. We also believe that ordinary savers should benefit from the same protections and standards regardless of whether the pension scheme is workplace or retail.

“The second Pensions Commission has started an important conversation about how the UK responds to the issue of pensions savings inadequacy. We look forward to contributing to that debate as the Commission develops its final recommendations and helps shape a pensions system that delivers better, fairer and more sustainable outcomes for millions of hardworking people across the UK.”

People’s Pension welcomes historic passing of Pension Schemes Bill

People’s Pension1, the UK’s largest commercial master trust, has welcomed the passing of the Pension Schemes Bill, hailing it as a turning point for UK pensions, with reforms which aim to deliver long‑term benefits for savers and the wider industry.

The Bill, which completed its legislative scrutiny through Parliament last night, is now set to become law. It is positive news for savers, including the seven million people who hold a workplace pension with the People’s Pension. The proposals, put value for money and saver outcomes clearly at the heart of a more efficient workplace pensions system.

Commenting on the Bill passing through Parliament, Patrick Heath‑Lay, Chief Executive Officer of People’s Partnership, provider of the People’s Pension, said:

“This is a historic moment for the UK pensions’ market. The Bill contains several important market reforms that will drive scale and efficiencies, while ultimately ensuring that better value is delivered to millions of pension savers. These changes will further strengthen the UK pensions system and help it drive investment into the wider UK economy.

“We are particularly encouraged by the introduction of default consolidator schemes, which offer a strong solution to the long‑standing challenge of small, deferred pension pots, alongside the inclusion of value‑for‑money measures within the legislation. Ensuring savers can clearly understand and assess the real value offered by different providers is essential. Equally we welcome the proposals to introduce default decumulation solutions to support members both plan and manage their retirement savings effectively. We are well into the planning phase of our own solution and believe it is vital component in supporting people make the right financial decisions that can be complex and hard to navigate. 

”These reforms are only the beginning, and the needs of savers must be kept firmly at the heart of this evolving process to future proof retirement saving. We look forward to working constructively with Government, regulators and alongside the industry to ensure the measures are implemented in a way that builds on the success of automatic enrolment and delivers meaningful long‑term benefits for savers.”

As a scheme that already operates at the scale envisaged by the Bill, with more than £40bn in assets under management, People’s Pension is well placed to support the delivery of these reforms.

The Bill is expected to gain Royal Assent shortly.

People’s Partnership calls on FCA transfer reforms to apply to whole of DC pensions market

People’s Partnership has today called for the FCA proposals (CP25/39) to apply to the whole defined contribution market, warning that partial reforms risks leaving millions of savers with weaker protections. While welcoming the FCA’s direction of travel, the provider of People’s Pension, said further improvements are needed to ensure consistent outcomes for all savers.

Speaking about implementation, the provider of the UK’s biggest commercial master trust1 said delivering meaningful reform will require close alignment between the FCA and the DWP, so changes apply consistently across both contract-based and trust-based schemes. Without a coordinated approach, it warned there is a risk of a regulatory divide emerging that leads to uneven protections for savers and unnecessary complexity for schemes.

The provider added that the proposals will need to work alongside reforms in the forthcoming Pensions Schemes Bill and further action should be taken to address practices such as the use of incentives, if they are to deliver consistent protections across the market.

Assessing the proposals themselves, People’s Partnership said they represent, in principle, a clear improvement on the current transfer process, which focuses on speed and convenience rather than quality of outcome. It welcomed the FCA’s focus on clearer information and better decision-making, adding that implementing reforms now, even if they are refined over time, would be preferable to maintaining the status quo.

Patrick Heath-Lay, CEO of People’s Partnership, said: “The FCA’s proposals around improving the pension transfer process are a significant step in the right direction but they will only work properly if they apply across the whole market and align to the wider pension bill reforms.

“Unless these measures apply to trust-based pension schemes, there is a risk of creating a divide for millions of pensions savers. We are calling on the DWP to act quickly and introduce regulations at the same time as those that the FCA is proposing for contract-based pension schemes.

“We need to ‘walk in the shoes of savers’ who have little, if any, understanding of retail vs workplace pensions or indeed contract vs trust-based schemes. These reforms need to be centred on savers and as such regulatory parity must be central to the changes. Fragmenting the rules would add unnecessary complexity, increase administration costs, make the system harder to navigate for schemes and expose savers to unnecessary risk.

“A single, aligned approach is within reach. Regulatory consistency would support a simple, whole-of-market solution that protects all savers, supports the wider value for money agenda and avoids adding avoidable burden to the system. We believe the proposals could be strengthened further by including an outright ban on incentives, which have no place in pension transfer decisions.”

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Budget 25: Response to salary sacrifice cap

In the Autumn Budget today (November 26) The Chancellor to the Exchequer, Rachel Reeves announced that salary sacrifice on pensions will be capped at £2,000 from 2029, so that contributions above this threshold are eligible for National Insurance contributions.

Responding to this change, Patrick Heath-Lay, Chief Executive Officer of People’s Partnership, provider of People’s Pension to seven million savers, said: “Like many, we had hoped salary sacrifice would not be touched in the Budget: this will have a significant impact on some savers and on business.

“However, even with salary sacrifice capped at £2,000 from 2029, pensions remain strongly tax advantaged. Tax relief on pension contributions added £70.8bn to saver’s pension pots last year. Restricting salary sacrifice will make the pensions tax regime less generous but the tax raised will be a small portion of available tax breaks: likely to be less than 5% of total tax relief in 2029.

“We would urge pension savers not to mistake this change for a fundamental overhaul of the pension tax system: these changes should not dent confidence in pension saving.”

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Pension industry poised to shift focus from cost to value as ‘Pound for Pound’ initiative unveiled

Government, regulators and leading pension providers came together for a roundtable (Tuesday, 22 July 2025), demonstrating the sector’s shared ambition to deliver better outcomes for savers through a joined-up approach to Value for Money (VFM).
 
The event marked the first public discussion of the ‘Pound for Pound’ (‘£4£’) initiative[1] – a pilot group of providers brought together by People’s Pension, which includes Aviva, Smart Pension, TPT Retirement Solutions, L&G and NatWest Cushon, and supported by Australian firm SuperRatings[2]. The initiative will explore how the UK pensions market can move beyond cost-based comparisons and instead assess performance through broader value-based metrics, understanding the practicalities of a process that will shift market conversations away from cost towards value. This is essential for the success of the Government’s proposed approach laid out in the Pension Schemes Bill 2025.
 
Hosted by the Minister for Pensions, Torsten Bell MP and chaired by People’s Pension CEO Patrick Heath-Lay and Emma Douglas, Wealth Policy Director, Aviva, the roundtable included[3], the FCA, DWP, Pensions UK and a number of the Mansion House Accord[4] signatories, including the £4£ Pilot group and Kirby Rappell, CEO of SuperRatings. Insights from Australia’s superannuation system were central to the session – highlighting how clear benchmarking, transparency and regulatory oversight have transformed member outcomes and understanding of value in Australia. The UK’s £4£ pilot draws on these lessons, providing anonymised benchmarking reports to UK schemes and assessing how qualitative and quantitative data can be used to meaningfully assess value.
 
Participants at the roundtable agreed that now is the time to collaborate with Government, regulators and the wider industry all needing to play their part in defining and embedding a robust and fit for purpose VFM regime. Intended to inform the impending regulatory consultation on VFM metrics, the discussion focused on how lessons from Australia and insights from providers could inform regulatory thinking and support the development of the Pension Schemes Bill.
 
Patrick Heath-Lay, CEO of People’s Partnership, said: “The Government’s drive to evolve the pensions market and centre it on value is a significant step change.  As a pension provider, shining a light on how we ‘measure up’ on value in a transparent and consistent way is a major shift but one that we must all rightly embrace. This needs to be introduced in a well-planned and effective manner that aligns to Government reforms, enables effective regulatory oversight and most importantly instils greater confidence in the pension system for savers. We set up the £4£ initiative to help inform this shift in focus from cost to value, and we are really encouraged by the shared appetite to collaborate and support this fundamental market change.”
 
Emma Douglas, Wealth Policy Director at Aviva, said:
“Getting the value for money framework right is an essential part of shifting the focus in workplace pensions from cost to value. The Pound for Pound initiative gives us the opportunity to test the key metrics in advance and to learn from this, as well as from the Australian experience.”
 
Zoe Alexander, Director of Policy and Advocacy at Pensions UK, said: “Getting value for money for UK savers is a key driver for the UK pensions industry. The Pensions Schemes Bill will introduce new requirements across much of the sector. We know measuring it is complex. We need clarity and evidence to establish the most effective data points for this new framework to ensure savers get the biggest bang for their buck, and to avoid excessive red-tape reporting. Though no system is perfect, there’s a lot to learn from our colleagues in Australia about their value for money outcomes regime and we look forward to testing this in the UK context.”
 
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Pensions Schemes Bill will bring much needed reforms – People’s Pension

People’s Pension the largest commercial master trust in the UK, has today described the Government’s Pensions Schemes Bill as a “pivotal moment”, which will shape a brighter future for both savers and the industry.


The Bill, which will be launched in Parliament today (June 5th) includes a raft of proposed market reform measures focused primarily on improving outcome and value for members, the growing scale of funds, consolidation of the pensions market as well as how pension schemes invest their members’ savings.


The highlights of the Bill include:
• The introduction of a “mega-funds” framework
• The introduction of value for money (VfM) metrics for workplace pensions
• A legal framework to embed the “default consolidator” means of consolidating small, deferred pension pots
• A new duty on schemes and Trustees to offer a default retirement product.

Commenting on the publication of the Bill, Patrick Heath-Lay, Chief Executive of People’s Partnership, provider of People’s Pension to seven million people, said:

“This is a pivotal moment in pension reform. The Bill contains many measures that will require providers to deliver better outcomes for savers and improve the workplace pension system. We are encouraged by the introduction of default consolidator schemes, which will be the most effective way to solve the dormant small pots problem.

“We’re also very pleased to see the inclusion of value for money metrics within the Bill as it is vital that savers better understand the real value that is offered by different providers.

“These reforms must prioritise savers, and we look forward to participating in a constructive dialogue with Government on how all the measures in this Bill can be implemented to achieve this, while continuing the success story of automatic enrolment.”

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People’s Pension reaffirms private markets and UK investment target after signing the Mansion House Accord

People’s Pension1, the UK’s largest commercial workplace pension scheme, has today announced it has signed the Mansion House Accord2 (the Accord), a landmark industry-led initiative.

People’s Pension is one of 17 pension schemes to sign the Accord, which commits signatories to the ambition of allocating at least 10 per cent of assets in their main provider-designed DC default funds to private markets by 2030. Within this, at least 5 per cent is targeted specifically for investment in UK private markets—subject to four critical enablers3, including the availability of suitable investable assets for providers4.

“Signing the Mansion House Accord reinforces our long-standing commitment to becoming a world class asset owner, to help our 6.9 million members build financial foundations for life,”

said Mark Condron, Chair of People’s Pension Board of Trustees.

He continued:

“Providing value to our members remains the key principle behind all of our investment activity, including in this area. Our continued growth in members’ assets, coupled with our growing in-house investment team5 means People’s Pension is now well-positioned to broaden our reach into these asset classes. To meet this ambition, we welcome the long-term support from the government to ensure a strong and sustainable pipeline of private investment opportunities.”

Patrick Heath-Lay, Chief Executive Officer of People’s Partnership, provider of People’s Pension, said:

“People’s Pension has a vital role to play in the exciting, shared vision for the future of the pensions’ industry, which will see bigger, stronger, value-driven schemes that will deliver better value to their members. By signing this Accord, we are reaffirming how seriously we take our commitment to delivering better outcomes, as well as helping to drive UK economic growth.”

Dan Mikulskis, Chief Investment Officer of People’s Partnership, added:

“As well as signing the Accord we have taken real, concrete steps to build the internal capability, and leverage our scale, to invest in private market assets in a way that leaves value in the hands of members and not asset managers.

“We look forward to continuing our philosophy of building deep partnerships with the right asset managers, alongside specialist internal capability to deliver the best outcomes for members. Current global risks highlight some of the benefits of UK assets which are also often cheaper to access than overseas alternatives leaving more value in the hands of members.”

The signing of the Accord follows the announcement earlier this year that People’s Pension would begin allocating a substantial portion of its assets under management to private markets, with a target of 10 per cent by 2030.

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The People’s Pension targets investing up to £4 billion into private market assets 

The People’s Pension1 has today revealed that it is set to start investing a significant proportion of the £31bn of assets it manages into private markets later this year, with a target to grow this allocation to £4bn by 2030.  

The nation’s biggest independent pension master trust says it is preparing to take its first steps into private market investment in the coming months with the imminent appointment of a Private Markets specialist and creation of a research capability. A substantial part of this new allocation of assets could be deployed in the UK, if assets are available that meet the return requirements. 

It is expected that over time The Trustees of The People’s Pension will target allocating up to 10 per cent of growth pool assets – or £4 billion2 – ­by 2030, initially in assets such as infrastructure and real estate. The Scheme has said this allocation will be dependent on it being able to access a ‘dependable pipeline’ of good quality investable assets that meet its return requirements at a fee level that leaves the benefits in the hands of members, and with the right operational structures in place.   

This latest announcement follows the £31 billion Scheme’s statement last year that it has now reached the scale to deploy meaningfully into private markets. The People’s Pension already invests 14 per cent of its members savings in UK-based assets within its growth stage default fund. 

Mark Condron, Chair of The People’s Pension Board of Trustees, said:

“What we are announcing today is a significant step forward on the path towards The People’s Pension investing in private markets, including key parts of the UK economy. 

“We are demonstrating how a responsible asset owner, operating at the right scale, can invest in both the best interests of its members and to the benefit of the wider economy in which they work.” 

Rachel Reeves MP, the Chancellor of the Exchequer, said:

“Growing the economy is the number one mission of the Government. This public commitment from one of the UK’s largest independent pension master trusts to invest here, at home in Britain, will help drive economic growth and support our milestone of improving living standards across the UK.”

Patrick Heath-Lay, Chief Executive Officer of People’s Partnership, which provides The People’s Pension, said:  

“We’re at a pivotal time for UK pensions with the government indicating a direction of travel toward scale and value for savers. As an independent £31bn master trust, without shareholders, we believe that now is the time to increase our investment in private assets for the benefit of our savers and the growth of the UK economy. The People’s Pension has a vital role to play in this exciting plan for the future of UK retirement savings.” 

Dan Mikulskis, Chief Investment Officer of People’s Partnership, said:

“As one of the fastest growing asset owners in the UK, our in-house investment expertise has grown significantly over the last 12 months and this journey will continue with the imminent appointment of a private markets’ specialist, broadening our investment reach. 

“In order for us to invest in private markets over this period it’s critical that the wider investment community, with support of the Government, provide a dependable pipeline of investable opportunities which deliver good value for our 6.8 million savers.” 

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Pensions Dashboards could accelerate losses from pension transfers beyond £2 billion

The introduction of Pensions Dashboards could see losses due to ‘poorly informed’ transfers into higher charging pensions soar beyond £2 billion before the end of the decade, leading workplace provider People’s Partnership1 has warned today.

The provider of The People’s Pension, which serves more than 6.8 million members, has shared new data from its Pension Transfer Outcomes Index2 showing losses from savers transferring into higher charging pensions will continue to rise. This trend is expected to increase once Pensions Dashboards, designed to give people an overview of all their pensions in one place, go live for the first time in two years’ time, on 31 October 2026.

New research3 commissioned by People’s Partnership has found that over 4 in 10 pension savers (42%) say they would be likely to use a pensions dashboard to move their pension from one company to another. An increase in transfers will lead to an increase in poorly informed pension transfer decisions, given the difficulties people face comparing their options, leaving many savers vulnerable to making choices that could negatively impact their financial future.

The profit for people organisation is calling for the incoming FCA Value for Money metrics to be clearly displayed on pensions dashboards. This will allow people to compare their pensions based on the information that matters most, such as the fees they are paying. This is supported by its research, which found that a simple way to compare the overall value for money provided by each of their pensions is one of the features over 4 in 10 (43%) pension savers most want to see on a dashboard, after a projection for their pension pot in retirement for over half of savers (53%).

The YouGov research also reveals that a fifth of pension savers (21%) have lost track of a pension. Half (50%) said they are likely to use a pensions dashboard to find any of their missing pensions, meaning millions could now take action on pensions previously lost to them, which could leave them thousands of pounds worse off in retirement.

Patrick Heath-Lay, CEO, People’s Partnership, said: “Pensions dashboards are a ticking timebomb for further detrimental pension transfers. Our research shows that many people find it difficult to navigate and compare their pension options due to overly complex or inconsistent information, leaving them extremely vulnerable in these types of transactions. With the arrival of dashboards, we anticipate this confusion will only intensify, making it even harder for savers to make informed decisions.

“We are very worried that dashboards will increase poorly informed decisions which lead to big losses over time. The risk is particularly severe if providers use dashboards as an opportunity to aggressively market the pensions they offer to consumers, without any way to easily compare options as we know that people don’t shop around for a pension transfer.

“It is vital that simple, easy-to-understand comparisons of value for money are on commercial pensions dashboards when they begin to go live in two years’ time, so people don’t fall victim to offers that seem better than they are and make decisions which they later regret. A simple consumer-facing value for money framework should apply to all pensions, not just relatively low-charging workplace options. Urgent action is needed to stop people from losing thousands of pounds and having to work for years longer before they can retire.”

People’s Partnership has previously revealed5 that nearly three quarters (72%) of people who had recently transferred a pension didn’t know exactly what the fees were for their new or old pension, and one in 10 (11%) didn’t think their new pension had any fees.

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People’s Partnership appoints Director of Public Affairs

People’s Partnership, the leading workplace pension provider, has appointed Victoria Jonson as Director of Public Affairs to further strengthen the organisation’s voice and profile with policymakers and the wider business community.

Victoria will join in November from the British Business Bank, where she is currently the Senior Director of Public Affairs, managing the Bank’s relationships with Ministers, parliament, trade bodies and think tanks. She has previously worked for a number of trade bodies including R3 – the Insolvency and Restructuring Trade Body, where she won a number of industry awards.

People’s Partnership provides of The People’s Pension, to 6.7 million savers, which is one fifth of the UK workforce, and is the nation’s largest commercial provider of defined contribution workplace provider.

Commenting on her appointment, Victoria said:

“I am delighted to join People’s Partnership at such a crucial time for pensions policy, during which we hope to work alongside the Government to drive changes that deliver greater value for savers.”

“This is such a unique business – a not-for-profit with strong values and purpose which has already done so much to help its members become financially stronger. I am looking forward to the many exciting challenges ahead.”

Patrick Heath-Lay, Chief Executive Officer of People’s Partnership, said:

“Victoria’s vast experience will be instrumental in further developing our influence and collaboration with Government, regulators and industry stakeholders. She will also play a key role in helping to raise awareness of our socially driven purpose to a wider audience.”

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