The King has outlined a new Pension Schemes Bill today as part of the new Government’s plans in his speech at the State Opening of Parliament.

The measures contained in the Pension Schemes Bill represent ‘business as usual’ for pensions policy, according to LCP partner Steve Webb.  

The legislation in areas such as commercial superfunds or consolidation of ‘micro’ pension pots comes after years of consultation and discussion under the Conservative administration, according to former Pensions Minister Sir Steve.

Measures to drive out small, under-performing DC schemes through a ‘value-for-money’ framework had been under preparation before the Election and are being carried forward by the new Government.

One initiative which might have been expected in the new Pensions Bill, but appears to be missing, is legislation to allow the Pension Protection Fund to act as a ‘public sector consolidator’ of small Defined Benefit pension schemes. However, Sir Steve said it may simply be that the necessary legislation could not be prepared in time rather than that the new Government has dropped this idea.

The King’s Speech enables the Government to outline its Parliamentary priorities for the months ahead and is the first since the Labour party’s General Election victory earlier this month.

It is written by the Government and delivered by the monarch in the House of Lords.

Sir Steve said: “This Pension Schemes Bill very much represents business as usual when it comes to pensions policy. There appears to be nothing in the legislation that so far represents a distinctively Labour party approach to pensions, and a Conservative minister could happily have brought forward this legislation. Perhaps inevitably, it will take time before we see how the new Government’s agenda differs from that of its predecessor. But this does mean that any distinctive policies will have to await legislation later in this Parliament and may take time to have effect."

Tom Selby, director of public policy at investment platform and SIPP provider AJ Bell, said the Government claims around the Bill delivering bigger pension pots needs to be treated with caution.

He said: "The Pensions Bill will put millions of people’s pension pots at the heart of the new Government’s drive to boost investment in the UK and ultimately drive long-term economic growth. The claim that the measures in the Bill could deliver bigger pensions needs to be taken with a pinch of salt, as ultimately this will depend on the performance of your investments.

"It is, of course, possible that this package of reforms will result in better investment returns for members – but this is never guaranteed. Investing in private equity, in particular, can come with significant costs and risks, so it is crucial trustees choosing to move in this direction are focused on delivering good retirement outcomes above all else."

The King's speech included over 35 proposed laws designed mainly to promote economic growth.

The new Labour Government said new laws proposed within the speech aim to improve living standards for working people by delivering manifesto commitments on better transport, more jobs and advancing housing and infrastructure projects through planning reforms.

Prime Minister Sir Keir Starmer said the plans will “take the breaks off Britain.”

Wealth management trade body PIMFA welcomed the Pension Schemes Bill but also expressed interest in the Government's plans to introduce a Skills England Bill.

The Government had been urged to announce a wider remit Pensions Bill during the King’s speech, including a call from the Pensions and Lifetime Savings Association.