In the cabinet reshuffle on Monday, Esther McVey, Member of Parliament for Tatton in Cheshire, England, was appointed secretary of state for work and pensions. She replaced David Gauke who moved to the Justice Department.
McVey accepted the role after Justine Greening, who was education minister, controversially declined it and quit the government all together.
Merry-go-round
Jon Greer, head of retirement policy at Old Mutual Wealth, said it is concerning to see the position constantly changing hands.
“It is disappointing that one of the most important jobs in government, which has a huge bearing on people’s financial wellbeing, has become a merry-go-round,” Greer said.
“The Department for Work and Pensions (DWP) has a huge budget, overseeing billions in state retirement support and other benefits, as well as implementing crucial private savings programmes like auto-enrolment.
“These are crucial issues for the UK’s long-term financial security and our personal prosperity,” he said.
Long term project
Despite the concern, Greer said McVey will at least have some understanding of the brief from her time as under-secretary for work and pensions in 2012.
“However, setting retirement policy and ensuring we have a well-functioning state pension system is a long-term project which is put at risk if the minister responsible for the DWP changes for one year to the next,” he said.
Those planning for their retirement need certainty and stability, Greer said, when it comes to government policy so that they can make informed financial planning choices.
Health and social care
Another major development of the reshuffle was health secretary Jeremy Hunt rejecting a new position as business secretary. He instead persuaded prime minister Theresa May to expand his current role to include explicit control over social care.
Rachael Griffin, financial planning expert at Old Mutual Wealth, said while this move seems to be quite simple on the surface, it is in fact quite substantial.
“The role used to sit with the Department of Communities and Local Government, which seemed counterintuitive.
“The government has been making noises about wanting more coherent and integrated health and social care systems and this is an important step towards the integration,” Griffin said.
She said bringing the two systems together allows the government to “set the record straight and tidy up a messy system”.
“We hope this opportunity is seized,” she said.
