\n The Government\u2019s latest reforms to workplace pensions have cleared the Commons, with a controversial power to influence where pension funds invest reinstated after being removed by peers.\n<\/p>\n
\n At the centre of the dispute is a so-called \u201cmandation\u201d power, which could allow ministers to push pension schemes to invest in UK projects.\n<\/p>\n
\n Critics say this risks political interference in people\u2019s retirement savings.\n<\/p>\n
\n But the Government insists it is only a backup power to improve returns for savers.\n<\/p>\n
\n Work and pensions minister Torsten Bell told MPs the policy is about boosting outcomes.\n<\/p>\n
\n He said the power has \u201cone purpose, supporting better outcomes for savers\u201d.\n<\/p>\n
\n He added the pensions industry has been held back by an over-focus on costs, saying: \u201cGiving the industry certainty that they can do what is in savers\u2019 interest\u2026 is the only purpose of the reserve power.\u201d\n<\/p>\n
Critics warn of risks to pensions<\/p>\n
\n Opposition MPs and peers raised alarm over the plans.\n<\/p>\n
\n Steve Darling said: \u201cMandation is the dead hand of government on growth for people\u2019s pensions.\u201d\n<\/p>\n
\n He warned: \u201cWe fear that going ahead with this would be feckless and dangerous for our pensioners.\u201d\n<\/p>\n
\n Meanwhile, Helen Whately claimed forcing funds to invest in certain areas could backfire.\n<\/p>\n
\n She said it \u201crisks lowering returns for savers and therefore their future incomes\u201d.\n<\/p>\n
Government hits back at \u2018scaremongering\u2019<\/p>\n
\n Labour MP Debbie Abrahams dismissed the criticism as \u201cdangerous scaremongering\u201d.\n<\/p>\n
\n Torsten Bell also accused opponents of hypocrisy, claiming some had privately supported the plans.\n<\/p>\n
What the reforms actually mean<\/p>\n
\n The wider pension reforms aim to:\n<\/p>\n
Help savers get better returns<\/p>\n
Make it easier to track and manage pension pots<\/p>\n
Improve information about retirement options<\/p>\n
Encourage investment that supports the UK economy<\/p>\n
\n They mainly affect people in defined contribution pensions, where your retirement income depends on how investments perform.\n<\/p>\n
\n Recommended reading:\n<\/p>\n
\n The UK pensions market holds trillions of pounds in savings.\n<\/p>\n
\n Any change to how that money is invested could have a direct impact on:\n<\/p>\n
Your retirement income<\/p>\n
Pension growth over time<\/p>\n
Where your money is invested<\/p>\n
Next steps for pension reform<\/p>\n
\n The bill will now return to the House of Lords as the back-and-forth process continues before it can become law.\n<\/p>\n
\n MPs say the reforms could boost pensions and strengthen the economy. Critics warn they could do the opposite.\n<\/p>\n
\n For savers, the outcome could shape how your pension grows for decades – and who ultimately decides where your money is invested.<\/p>\n","protected":false},"excerpt":{"rendered":"The Government\u2019s latest reforms to workplace pensions have cleared the Commons, with a controversial power to influence where…\n","protected":false},"author":2,"featured_media":539063,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[14],"tags":[84,4176,4174,4175,56,54,55],"class_list":["post-540966","post","type-post","status-publish","format-standard","has-post-thumbnail","category-personal-finance","tag-business","tag-finance","tag-personal-finance","tag-personalfinance","tag-uk","tag-united-kingdom","tag-unitedkingdom"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/540966","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=540966"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/540966\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/539063"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=540966"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=540966"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=540966"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}