Pensions are set to become simpler, easier to manage and more rewarding for ordinary workers under a major new law backed by Luton South MP Rachel Hopkins.
For thousands of workers in Luton and across the country, the reforms could mark a long-overdue change to a system that has often felt opaque and unmanageable. By putting clarity, consolidation and value at its heart, the Bill promises not just better pensions — but greater confidence in the future.
Speaking in Parliament on Monday, Ms Hopkins welcomed the Pension Schemes Bill, saying it would help people better understand what they are paying into, how much they can expect in retirement and how to get better value from their savings. As someone who has worked in human resources and managed questions from employees about their pensions, she said she was acutely aware of how confusing the current system can be.
“Most employees just want to understand more about their pensions: what their contributions are and how those will benefit them in the future,” Ms Hopkins told MPs. She said the Government’s proposals would help tackle this confusion, allowing savers to see their “whole pensions picture” — including workplace and state pensions — in one secure online dashboard, expected to launch next year.
Ms Hopkins argued that millions of workers are currently being short-changed by a system that leaves their hard-earned savings scattered across multiple small pots that are often expensive to maintain and deliver poor investment returns.
The new legislation aims to address this by automatically combining small pension pots into larger, more efficient schemes. She said this would “deliver more money for savers by making pensions simpler to understand and easier to manage, and they will return better value over the long term.”
Under the reforms, pension providers will be required to prove they offer value for money, based on investment performance, costs and the quality of service. Schemes that underperform could be forced to close or merge with others, meaning savers are less likely to get stuck in poor-quality pensions for years without realising it.
Ms Hopkins highlighted that there are currently more small pension pots in the UK than there are pensioners, with over 13 million pots holding £1,000 or less — a number that continues to rise by around one million each year. These small pots often struggle to generate meaningful returns, as they are not large enough to invest in more productive, higher-yielding assets.
The Bill, which is one of the first major pieces of pensions legislation under the new government, also aims to support long-term investment in the UK economy. By easing the rules around how surplus pension funds can be used, it could unlock around £50 billion for businesses to invest in growth, innovation or debt reduction — though trustees would still need to prioritise the security of members’ future pensions.
Ms Hopkins said she supported this approach but pressed ministers to ensure that pension scheme trustees continue to act in the interests of savers. “Will Ministers ensure that member or worker representation on trustee boards is part of the plans?” she asked during the debate on the Bill’s second reading in the Commons, warning that strong governance and protections are essential if the reforms are to succeed.
While the pensions industry has broadly welcomed the Bill, and government estimates suggest it could boost average retirement savings by nearly £30,000 over a working life, some experts have called for further detail on how the changes will be implemented. Consumer groups have also stressed the need for clear communication to ensure that workers fully understand what the changes mean for them.
For Ms Hopkins, the Bill is not just a technical fix — it’s a step towards making pensions fairer, clearer and more secure for ordinary people. Drawing on her own experiences as a saver with multiple pensions, she said she expected to benefit from the new rules herself.
“I suppose that as a worker with a variety of pensions, I am going to benefit from the Bill,” she said, adding: “I very much welcome the introduction of the long-awaited pensions dashboard, which will provide savers with their whole pensions picture — workplace and state pensions — securely and all in one place online. We hope that it will finally be with us next year. I commend the Bill to the House.”
