NAPF 2011: Hutton says Labour reforms ‘made matters worse’

Lord Hutton has said the Labour administration’s pension reform package did not go far enough and may have “made matters worse”.

He told delegates at the National Association of Pension Funds (NAPF) Conference 2011 that, although the last government's reform plan made a start on overhauling pensions, it "did not go far enough" and may have hindered progress.

He said: "I have to give full marks to ministers for the response I am seeing to these reforms. We tried but did not go far enough. In fact we made matters worse.

"I say that with a great deal of regret. That is why I decided to take on the commission."

Responding to a question from Mirror Group trustee Alan Burns, he said he was unsure if the collation had the time, or willingness, to implement all of his recommendations before the next election.

"I do not know, I hope so," He added.

PwC chief actuary Raj Mody asked Hutton whether he could comment on rumours the government was considering delaying auto-enrolment.

Hutton said while he could not comment specifically, the halls of Westminster were always alive with rumours. He added any delay to auto-enrolment would be a disaster and urged the government to press ahead with the reforms, on schedule.

The Labour peer also said the defined benefit versus defined contribution debate had an element of "Punch and Judy" and people should take a step back. He added DB had been stereotyped as inferior to DC.