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‘We’ll implement AE reforms when VIABLE’ – says Minister Maynard.

henry tapper

The idea behind “viability” is both “achievable and acceptable – according to various dictionary definitions.

I spoke after Paul Maynard’s speech to a senior civil servant charged with policy on auto-enrolment and asked him who the Minister was referring to – when considering viability.

I was left in no doubt that the principal stakeholder in this is the employer and the principal concern for employers will be the cost of lowering the earnings trigger to pound zero

It would mean that employers, already tasked with paying higher minimum and living wages , would need to contribute 3% against the first £10,000 we earn, for many low earners that might be all they  earn.

Only a matter of time

The DWP say that in conversations with the key sector affected, hospitality, “viability” is only a matter of time.

Part of the success of the auto-enrolment staging schedule was that it gave employers time to get ready for AE in terms of operations and cashflows. The DWP are keen to give employers plenty of notice of increased contribution requirements. In my conversation, a “couple of years ” were mentioned.

Bearing in mind the cost of the increase will fall both on employers and employees , the viable time for what will be small businesses is unlikely to be before 2026 and most likely later than that. If you are planning an election campaign, an announcement of an extra payroll deduction will likely fall on the far side of the election itself.

Pots for the poor

None of the above is particularly controversial, but it is important for those making  business plans, whether on the employer or workplace pension side, to know when increased contributions will be demanded and received,

What was more controversial about the Minister’s comments, at least among my correspondents was this justification for including the very low paid (characterised as Maynard’s North Blackpool constituents, who might be left with the smallest of pots when they hung up their boots.

Ludicrous statement by Maynard on Blackpool savers. He is of course correct but what he needed to say was that small D.C. savings were of little use to people trying to manage their retirement lives in Blackpool.

They need something more guaranteed. And many also need their rent not to eat into their savings so much and their pension credit housing allowance be so reduced that saving wasn’t worthwhile. We need a total rethink of state pension and AE provision and means tested benefits just before, at, and after SPA.

If the Minister wants me to put my correspondent in touch, I will be happy to make introductions.

Can Paul Maynard enact change?

The job of Pension Minister has been downgraded over recent years but it is one that recently occupied Laura Trott, number two in the Treasury. It can be both a springboard and the quietest graveyard. I fear for Paul Maynard it will be the latter. He not only faces the most difficult of general elections by the end of the year, but also an inquiry into his electoral expenses that may mean a by-election too,

Which makes the cheery delivery of this speech – delivered in-person, all the more commendable The mood music of the hall is collectable in Edinburgh as the audience has a long and static journey down escalators to get to the Exhibition Hall, you get to hear what people are thinking- and thinking aloud.

The audience liked the candour of Maynard’s approach, even if they were sceptical of his capacity to bring any of the many policies he promised us mid-year consultations on, to any form of conclusion.

In reality, Paul Maynard has zero chance of enacting any of the legislation that has been put into the hopper by his predecessors, there being no parliamentary time to raise a pension bill, let alone enact one. So projects such as VFM, small pot consolidation (which now has an “action group”), DC decumulation as well as implementation of AE reforms are for the next parliament, one that looks vanishingly unlikely to feature Paul Maynard as Pensions Minister.

Can Paul Maynard make us laugh?

Maynard is a funny man, a “cuddly minister” – to use his own words

The impending threat of Paul Maynard turning the screws on any scheme not being dashboard ready by October 26th will not be high on many risk registers.

We are in this parliament’s end-game and the best we can hope for, is a bit of good humour.

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