Stephen Timms has returned to the Department for Work and Pensions (DWP) as minister of state.
Timms, who served as pensions minister from 2005 to 2006 under Tony Blair, secured his seat in East Ham with 51.7 per cent of the vote, marking a decrease from 77.8 per cent.
He has represented East Ham since 1994, initially joining Blair’s government as parliamentary under-secretary of state at the Department of Social Security in 1998. He was later promoted to minister of state in 1999.
Timms was appointed chief secretary to the treasury in 2006 where he served until 2007, departing following Gordon Brown’s cabinet reshuffle.
He was appointed minister for employment and welfare reform in 2008, later returning to his previous role as financial secretary to the Treasury the same year.
In a recent Work and Pension Committee debate held in May this year, Timms emphasised the success of auto-enrolment in increasing pension savings while warning of insufficient retirement incomes without higher contributions, saying “the amounts that people are saving under auto-enrolment are not enough for an adequate retirement income.”
He recognised the gender pension gap, stating that it “remains much too big,” as well as dwindling savings among the self-employed. He also supports the idea of increasing UK economy investment from pension funds but cautions against prematurely closing defined benefit funds.
Timms also expressed concern over discretionary pension hikes, demanding oversight and measures to meet members’ expectations. He urged companies and authorities to follow ethical standards and implement long-term policies to solve these challenges.
Industry leaders have expressed optimism for Stephen Timms’ appointment as pensions minister highlighting his experience and knowledge in understanding complex issues such as savings adequacy and pension reforms.
Standard Life retirement savings director Mike Ambery says: “Pensions, retirement and savings is a complex brief so it’s great to have a Minister in post who has been following the issues so closely through the Work and Pensions Committee. Having the context around challenges like the lack of savings adequacy, the need to implement auto-enrolment reforms, the pension dashboard and small pots to name just a few of the issues, will be incredibly important to ensuring the government is able to move matters forward at pace.”
Aegon head of pensions Kate Smith says: “We welcome Sir Stephen Timms back into a Ministerial role in the Department for Work and Pensions. If confirmed as the new Pensions Minister, it will be his third time in this role.
“Timms is well-known and highly respected in the pensions world, and with his wealth of pensions knowledge, he’ll be able to get to work quickly. As recent chair of the influential Work and Pensions Committee, Timms is used to asking the challenging questions and we expect this to continue as the DWP and Treasury, hopefully with input from the pensions industry, identify and take forward the new Government’s pension priorities.
“Top of the agenda will be the all-important pensions review referred to in Labour’s manifesto. It will be particularly welcome if this is led by an Independent Pensions Commission, making recommendations to Government. The new Labour Government also need to get to grips with how and where their pension priorities fit into the long list of ‘work in progress’ initiatives inherited from the outgoing Conservative Government. Aegon stands ready to work with Sir Stephen and the new Government.”
