Following Esther McVey’s dramatic Brexit-induced resignation from the Cabinet, Theresa May loyalist Amber Rudd has been confirmed as the new Secretary of State for Work and Pensions.
Tom Selby, senior analyst at AJ Bell, comments:
“Right now domestic pensions policy issues are probably a long way from Amber Rudd’s mind as Westminster lurches from on Brexit crisis to another.
“However, once the dust has settled she will find a department facing challenges on a number of fronts.
“For Rudd it is very much a case of out of the frying pan and into the fire. Having left the Home Office – a department still dealing with the fallout from the Windrush scandal – Rudd will now have to defend the Government’s Universal Credit programme and its treatment of WASPI women facing hikes in their state pension age.
“If she stays in the job long enough she could be required to shepherd through an acceleration in the state pension age increase to 67 and 68, hardly a popular policy. The recent slowdown in life expectancy improvements may yet demand a review of the plans, although it remains unclear whether this is a blip or a longer term trend.
“More immediately, Rudd will have to decide whether the Pensions Dashboard project – which was reviewed and eventually backed to a degree by her predecessor – should go ahead as planned. Automatic enrolment is also reaching a crucial phase, with contributions set to rise to 8% of earnings from April next year.
“All of this may seem unimportant given the nation’s current obsession with Brexit, but they are hugely important and affect the lives of millions of people in the UK.”
