Monday, 4 October 2010

Beware a 'nudge' fudge on pensions

According to one report, the Government's response to the review of auto-enrolment may now appear later in the year. As Nigel has posted previously, here are some unpleasant rumours circulating about how the Coalition may undermine the consensus that has been built up around the policy. Of course it would all be pitched in terms of the difficult economic environment - especially exempting smaller businesses.

But this would - of course - be a major retreat from arguably the most high-profile Nudge-inspired policies*. Auto-enrolment as a way to 'nudge' people into saving is given a good bit of coverage in... err.. Nudge. And go back and read through the DWP docs first setting out auto-enrolment and you will see referenced one R Thaler, now an adviser to one D Cameron's Behavioral Insight Team. Therefore if the Coalition does back away, even partially, from auto-enrolment then someone ought to seek out Thaler's views.

* This is also why I find it irritating when Labour supporters take the mick out of the Tories over 'nudging'. a) we got there first and b) we should not surrender this ground to the Right.

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