The resignation of the UK’s Secretary of State for Work and Pensions, Esther McVey, is “unsettling”, according to the head of retirement policy at Quilter.
McVey, alongside Brexit secretary Dominic Raab and junior Brexit minister Suella Braverman, are among the big names to have resigned from their cabinet posts following prime minister Theresa May publishing the UK’s draft Brexit agreement with the EU.
Jon Greer, head of retirement policy at Quilter, said: “Brexit’s knock-on impact to the rest of sensible policymaking unrelated to the departure from the EU continues as ministers line up for the door, leaving a political vacuum.
“Esther McVey’s departure after just 10 months in her position is unsettling, particular since she evidences the lack of faith in Theresa May’s leadership. Who will replace her and how long they will last is anyone’s guess, particularly given the growing risk of a no-confidence vote.”
Media outlets have said it is expected that more resignations in the cabinet are set to come within the next 24 hours.
Lack of stability
McVey was only in the job for 10 months after taking over in January 2018 from David Gauke, who was only in the role since June 2017.
The lack of direction and leadership at the Department for Work and Pensions (DWP) has unsettled the financial services sector over the last 12 months.
Greer added: “Leadership at the DWP has been about as stable as a mobile home in a hurricane as a parade of ministers have picked up the baton only to fling it away.
“Setting retirement policy and ensuring we have a well-functioning state pension system is a long-term project which is put at risk if the minister responsible for the DWP changes from one year to the next.
“Those planning ahead for their retirement need certainty and stability when it comes to government policy so that they can make informed financial planning choices.
“There are some big ticket issues that cannot be ignored for much longer, such as the future of the state-pension, gaps in auto-enrolment and the pension dashboard among many others. However, it seems all this will continue to be on the backburner as Brexit sits centre stage at Westminster.”
