New legislation put forward by the Labour Party will see those impacted receive more than £11,000 in extra cash on average
The Department for Work and Pensions (DWP) has said in a new update that people could soon be more than £11,000 better off, on average. DWP is responsible for, among other things, pensions and benefits, which are distributed to around 20 million people in the UK collectively.
A new update from the Government department on X on Thursday has detailed how around 15 million people will benefit from considerable sums of cash as part of new legislation. Detailing Labour’s Pension Schemes Bill, which was discussed by His Majesty during the King’s Speech earlier this week, DWP bosses said: “It’s going to help support our mission to kickstart economic growth and improve retirement outcomes for future pensioners.
“The #PensionSchemesBill could help an average earner have over £11,000 more in their pension pot by retirement, while increasing the opportunity for pensions investment in the UK from an industry currently worth around £2 trillion. The #PensionSchemesBill will tackle the issue of small pots.
It added that “pension schemes will focus on the value they provide for future pensioners” and said the bill will “facilitate more productive UK investment”. DWP said these are just some of the ways retirement outcomes could be improved for more than 15 million people.
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Labour’s new bill sets out to consolidate small pension pots in order to help savers keep track of their pensions. The bill will also include a standardised “value for money” test, which will include powers to wind up poorly-performing schemes.