Autumn Statement papers published with pensions focus

The government published a group of pensions policy papers alongside the Autumn Statement, covering small pots, the lifetime provider model, collective defined contribution (CDC), master trusts and trustee skills, according to an analysis by the consultancy the lang cat published on 27 November 2023¹. The papers involve the Department for Work and Pensions (DWP), the Treasury and The Pensions Regulator, with the Financial Conduct Authority mentioned less often¹.

One document, titled "Looking to the future: Greater member security and rebalancing risk", combines several areas for discussion. Its first part sets out the feedback the DWP received on the earlier small pots consultation, the government's response and next steps; its second part is a call for evidence on the "pot for life" idea, rebranded in the Autumn Statement as "lifetime provider", and on how to grow the CDC market¹. A separate paper addresses the regulatory approach to master trusts and acts as a progress report five years on, with discussion of how master trusts will be affected by the extension of auto-enrolment¹. A further paper covers pension trustee skills and culture and refers to the creation of a trustee register¹.

On value for money, the FCA has issued a statement signalling that detailed rules for a new value for money framework for defined contribution workplace pensions will be consulted on by the regulator in spring 2024¹. Value for money also appears in the trustee paper, which encourages trustees to pursue it, though not necessarily the cheapest option¹.

Outside pensions, the main rate of National Insurance was cut from 12% to 10%, taking effect from 6 January¹. The lang cat described the timing as significant, noting the government did not wait until April¹.

Why it matters for households

The papers concern how workplace pensions are run and how small pension pots are handled. The small pots consultation response and the call for evidence on the lifetime provider model set out the government's next steps on consolidation, which the analysis says the government is keen to see more of, on the basis that bigger schemes are easier to manage¹. The master trusts paper matters to members of those schemes because master trusts are being viewed as the basis for other functions, such as default pension consolidators¹. The trustee skills paper and the proposed trustee register concern who runs schemes and how they are governed¹. The value for money framework, once consulted on, would apply to defined contribution workplace pensions¹.

The National Insurance cut changes the rate deducted from pay for employees within its scope from 6 January, earlier than the start of the tax year¹.

What happens next

The FCA will consult on detailed rules for the value for money framework for defined contribution workplace pensions in spring 2024¹. The call for evidence on the lifetime provider model and on growing the CDC market forms part of the "Looking to the future" document¹. The analysis notes that the prospect of a general election looms over the announcements, and that pension measures are less likely to be unwound by a new government than some tax measures, though it says unravelling the tax cuts would not be easy¹. No further dates for the pensions papers have been reported.