Prospect welcomes return of Pensions Commission to tackle ‘pensions timebomb’

The Pensions Commission is being revived by the government to examine why the pensioners of the future are on track to be poorer than the pensioners of today, unless action is taken to change course.

Prospect welcomes that the Pensions Commission, which was first established in 2006 and led the way towards automatic enrolment, will now be tasked with making new recommendations to confront the retirement crisis.

It is hoped that the Commission, which will have input from trade unions, the private sector and independent experts, will be able to report back by 2027.

Mike Clancy, Prospect General Secretary, said:

“The UK economy is sitting on a pension timebomb, with most employees not accruing enough to give them decent retirements, and it is welcome that the government has recognised this and is taking action.

“This review must consider a wide range of options for improving pensions for employees and self-employed workers, including the design of schemes and levels of contribution, and learn from the experience of trade unions who have fought to maintain decent pensions for our members.

“Prospect has been leading the campaign to tackle the Gender Pension Gap, and it is welcome to see the government acknowledging the scale of the problem and including it in this review. There are steps government could take now to tackle this injustice, such as ensuring all maternity leave is fully pensionable, to stop pension gaps opening up between male and female workers.”