Darling predicts govt will delay auto-enrolment

Author: Jenna Towler
IFAonline | 19 Oct 2011 | 16:30

Categories: Personal Accounts| Pensions General

Topics: NAPF| auto-enrolment| Alistair Darling| Labour| pension reform

Former chancellor of the exchequer Alistair Darling

The coalition is considering postponing auto-enrolment, according to former Chancellor Alistair Darling, who said a delay of a year or more probably means the reforms will be abandoned.

Speaking at the National Association of Pension Funds (NAPF) annual conference, Darling said "Of course [the government] is thinking about it".

Darling said he thought a delay of more than 12 months would effectively mean the  reform package would be over.

"If you delay these for more than a year that is effectively saying it is not going to happen."

Darling, who will address the conference in a keynote speech on the importance of pensions later today, reiterated the package of reforms had been put in motion by the Labour government when it commissioned Lord Turner to assess the country's pensions in 2004.

He said: "The present government is thinking about stalling on one of the planks of that reform."

Darling said while auto-enrolment was a good move, backed by political consensus, a move to full compulsion would be going much further than what was politically agreed.

"We should give these reforms a chance," he said.

He also said any public sector strikes over pension changes were not vindicated.

"Strikes are not justified," he said. This will be sorted out by negotiation. That is what is necessary."

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You bet they are!

This is one time I hope Darling is right. Too right they a mulling it over. Auto Enrolment will be about as popular as a dose of clap – particularly in the current economic situation. It will almost be a guarantee of Government unpopularity – and which Governments wants to court that? Of course I recognise that the vested interests – some advisers (most?), some of the naffer Life Offices who thought they could clutch at this straw and the so called Benefits Consultants (whose benefits – theirs – as always), will be somewhat disappointed if not miffed.

Posted by: Harry Katz

19 Oct 2011 | 17:46
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