By Ken Symon, Business Editor
The government’s pensions white paper is “a missed opportunity” and has partly suffered from the rivalry between Tony Blair and Gordon Brown, according to a former Downing Street adviser.
Pensions specialists interviewed for a Channel 4 programme blamed Brown’s distraction with the leadership battle with Blair for the failure of the reforms to be the most radical shake-up of pensions since the Beveridge reforms which set up the welfare state.
Ros Altmann, the former pensions adviser to Number 10, who presented the programme, argued that the public is being hoodwinked over the reforms and claims that there are actually likely to have adverse effects.
“Part of the problem lies in the rivalry between Tony Blair and Gordon Brown. I was witness to many arguments between No 10 and the Treasury on this topic,” she said.
“Tony Blair asked me to write a proposal on how pensions reform could be made simpler. I put forwards the idea of raising the state pensions and ending means testing. Although the prime minister liked my ideas, I believe Gordon Brown blocked them because he didn't want to end means testing.”
Derek Scott, a former economic adviser to Blair, also said that the rivalry between the two politicians affected pensions reform.
“Gordon Brown is generally only interested in reform that he’s initiated so I think in this area he felt the running was being by the prime minister in No 10 and heels were dug in the Treasury in a way that frankly wasn’t very productive. You have to look at the state pension and private pensions in the round – now I think the Prime Minister recognised that to be fair – but the chancellor in particular was very reluctant to do that,” he said.
The government has described the proposal as “the most fundamental set of reforms since Beveridge”, but former government advisers say they will do little to address long-term problems.
Alan Pickering, a one time government adviser, said the government had “missed a wonderful opportunity to make a radical change which the electorate is up for”.
He added: “Any government would have been able to come up with a more cohesive substantial set of proposals than has emerged in the white paper.”
Nick Bamford, chairman of the Society of Financial Planners, said: “As Brown continues to want us to spend rather than save, there’s a pretty good chance that he will be the one responsible for the total destruction of UK pensions saving.”
The 30 Minute programme, Gordon Brown’s Pensions Timebomb, was broadcast on Channel 4 on Friday
