Industry reaction | 'Blockbuster' pensions bill promises simpler saving & better returns for 20 million workers

The UK Government has introduced a new Pension Schemes Bill designed to transform how people save for retirement, simplify pensions, and increase long-term investment into the British economy. Touted by ministers as a “game changer,” the Bill aims to boost the retirement outcomes for around 20 million workers and unlock billions in economic investment.

According to Work and Pensions Secretary Liz Kendall, the reforms are about “securing better value for savers’ pensions” and ensuring hard-working people get a fair return. “Our reforms will deliver a huge boost to future generations of pensioners,” she said. Chancellor Rachel Reeves added that the legislation will help deliver “bigger pension pots for savers” and channel £50 billion directly into the UK economy.

Here, HR Grapevine unpacks the Bill’s key reforms and examine what some of the UK’s most influential pension and financial experts are saying.

Small pot consolidation

One of the most significant changes is the merging of small pension pots, specifically those under £1,000, which accumulate as workers move between jobs.