General Election 2017: Hung parliament "uncertainty" to hit pensioners after grey vote policies backfire

Oliver Gill
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Media Gather Outside Of The Home Of Business Secretary Vince Cable After His Comments On BskyB Emerged
Former business minister Sir Vince Cable won back his Twickenham seat from the Conservative party (Source: Getty)

Urgently needed pension and social care reforms are set to be left in limbo after the Conservative party failed to secure a parliamentary majority, experts have warned.

A raft of changes, including adjusting the state pension age and a revamp of social care, were put on ice after the election was called in April.

"The snap election left areas of the finance bill and pension policy in limbo. This result means that period of uncertainty continues," said Old Mutual head of retirement policy Jon Greer.

Read more: CMC says trading volumes were "astronomical' overnight

AJ Bell senior analyst Tom Selby said:

A hung parliament is the worst possible outcome for pensioners and people saving for their retirement.

"It means that key decisions around the state retirement age, the state pension triple lock, social care funding and pension tax relief are all going to take a back seat while the wheels of Westminster slowly turn."

Meanwhile Hugh Nolan, president of the society of Pension Professionals, said:

So it looks like the grey vote from pensioners has done it again. Theresa May dared to withdraw the Conservative commitment to the triple lock while Jeremy Corbyn’s manifesto promised to make pensioners even better off.

And JLT employee benefits head of technical John Wilson added: “The result of the General Election may now be known, but many state and private pension challenges will be harder under a hung parliament if we are to build trust in the system and encourage more saving."

Social care

So-called "dementia tax" plans on social policy revealed by Theresa May attracted controversy when announced in May. Plans to make people receiving care at home liable for the full costs if they are worth at least £100,000 were criticised by charities and pensioner groups.

Read more: Forget the outrage, Theresa May should not have U-turned on social care

“May painted a target on her back when she announced her controversial social care plans as she faced negative public sentiment towards her proposals and seemed unable to answer crucial questions," said Old Mutual financial planning expert Rachael Griffin.

"She is now unlikely to be able to get such a controversial policy through parliament.

“Whichever government is formed, the solution to the social care crisis needs to be a long term one, and should not be a policy that is allowed to flip-flop with the political current."

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