by Samuel Dale

It has been a chastening month for Britain’s pensions industry as regulators and the government have finally cracked the whip on its excesses.

In a series of policy announcements the government has launched a self-proclaimed “full frontal assault” on the industry. Pensions providers have entered the realm of banks, energy firms and politicians with a special place of distain in British hearts.

To tackle the problems, the government has ripped up the existing rules on annuities in the Budget sending insurers’ share prices south. It has imposed a 0.75 per cent cap on pension charges from next April and imposed full transparency of all costs.

And in a further blow to the sector the Financial Conduct Authority is launching a review into close-book pension funds to make sure savers are being treated fairly. Again, this sent insurers’ share prices tumbling.

No one can seriously accuse the government of bowing to vested interests in the pensions industry. They are at open war.

Former chancellor Nigel Lawson tells me the pensions industry is “the most powerful in the land” and he found it difficult to take on so this is no mean feat.

For Labour this creates a major political headache. Shadow pensions minister Gregg McClymont has been one of the most effective opposition ministers. He has a superb command of his brief and has made the political weather on pensions regularly.

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