For companies struggling to keep on top of auto-enrolment administration, the Chancellor announced a practical change for minimum contribution rate increases. Instead of the next two phases of increases taking place in October, they will be in line with the tax years and go ahead in April of the following year.
The Chancellor confirmed plans for the pooling of LGPS funds into up to six large funds, announcing the publication of guidance on this. The Government intends this to significantly reduce costs and maximise investment return. It has invited LGPS administering authorities to submit proposals for the new pooled arrangements.
As regards the state pension, George Osborne announced the largest real terms increase to the basic state pension since 2001, stating that it will be increased again by the 'triple lock' (a guaranteed increase, which some commentators have criticised as promoting intergenerational unfairness) to £119.30 a week. He also set the rate of the new single tier pension at £155.65 per week.