Autumn Statement 2023

23 November 2023

On 22 November the Chancellor of the Exchequer, Rt Hon Jeremy Hunt MP, delivered the government’s Autumn Statement.

Ahead of the statement, the IFoA called on the Chancellor to focus on long-term thinking with a particular focus on pensions following the announcement of the Mansion House Reforms earlier this year.

In what is likely to be the penultimate financial statement from this government before the next general election, the Chancellor signalled a reprioritisation in the government’s economic approach from one focused on fiscal responsibility to one of economic growth.

To that end, announcements included over 110 pro-enterprise reforms and cuts to taxation on businesses and
workers alike.

Through various new proposals, there were also measures to incentivise people back into work and away from entitlement dependency – thereby increasing economic participation and shrinking social security spending.

A number of pensions measures, including potentially quite radical proposals to support growth, were front and centre of the statement.

Moreover, there was a plethora of funding and political commitment to back scientific and technological innovation, to expand skills – particularly in mathematics – and for expansions in electric vehicle infrastructure all in order to support growth in the future economy.

Significant announcements for actuaries

The government has:

• confirmed that it will be pushing ahead with plans to explore how the Pension Protection Fund could act as a defined benefit (DB) consolidator
• announced plans for a call for evidence on a ‘pot for life’ model, a lifetime provider system to simplify the pensions market by allowing individuals to move towards having one pension pot for life

The government will:

• introduce the multiple default consolidator model for defined contribution (DC) schemes, to enable a small number of authorised schemes to act as a consolidator for eligible pension pots under £1,000
• consult on whether changes to rules around when DB pension scheme surpluses can be repaid could incentivise investment in UK growth
• introduce a March 2025 deadline for the accelerated consolidation of Local Government Pension Scheme (England and Wales) assets, as well as new private equity investment requirements
• move toward DC pension fund consolidation, expecting to see a market in which most savers belong to schemes of £30 billion or larger by 2030
• introduce secondary legislation to give effect to Solvency II reforms
• consult on the design of a new framework for encouraging the establishment and growth of captive insurance companies in the UK: the consultation will launch in Spring 2024
• publish a response to the consultation on the Digital Securities Sandbox, which will facilitate the adoption of digital assets across financial markets

Read our briefing

To outline the Autumn Statement in more detail, we have produced a member briefing (PDF, 370 KB)

Should you wish to discuss any of the points raised, please contact our Head of Public Affairs at henry.thompson@actuaries.org.uk.