Almost 90 local government pension pots will be grouped together, with defined contribution schemes merged and assets pooled together.
This is part of the government’s plan to increase economic growth through investing in infrastructure.
Pension schemes get greater returns when they reach around £20bn to £50bn as they are “better placed to invest in a wider range of assets”, according to the government.
This is backed up by evidence from Canada and Australia, the government argues – with Canada’s schemes investing four times more in infrastructure, and Australia three times more compared to the UK’s defined contribution schemes.
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Ms Reeves said it marks “the biggest set of reforms to the pensions market in decades”.
The chancellor added the changes would “unlock tens of billions of pounds of investment in business and infrastructure, boost people’s savings in retirement and drive economic growth so we can make every part of Britain better off”.
However, Tom Selby, the director of public policy at financial company AJ Bell, said: “There needs to be some caution in this push to use other people’s money to drive economic growth. It needs to be made very clear to members what is happening with their money.”
The government says the funds will be regulated by the Financial Conduct Authority and will need to “meet rigorous standards to ensure they deliver for savers”.
The Local Government Pension Scheme in England and Wales will manage assets worth around £500bn by 2030. These assets are currently split across 86 different administering authorities, with local government officials and councillors managing each fund.
Under the government plans, the management of local government pensions and what they invest in will be moved from councillors and local officials to “professional fund managers”.
This will allow them to invest more in assets such as infrastructure, supporting economic growth and local investment on behalf of the 6.7 million public servants, the government said.
Defined contribution pension schemes are set to manage £800bn worth of assets by the end of the decade.
There are around 60 different multi-employer schemes, each investing savers’ money into one or more funds. The government will consult on setting a minimum size requirement for these funds.
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Businesses cautious – but pensions sector backs plans
Businesses will need to be reassured that the government’s plans are watertight following the fallout from the budget, according to the trade group the Confederation of British Industry (CBI).
The CBI’s chief economist Louise Hellem said: “While the chancellor is right to concentrate on mobilising investment, putting pension reform to work for the government’s growth mission, unlocking investment also needs competitive and profitable businesses.
“With the budget piling additional costs on firms and squeezing their headroom to invest, the government needs to work hard to regain the confidence in the UK as a place businesses and communities can succeed.
“Pension schemes will want to operate within a UK economy that is prospering.”
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But key parts of the pensions sector gave their backing to the government’s plans, including Standard Life, Royal London, Local Pensions Partnership Investments and the Pensions and Lifetime Savings Association.
Deputy Prime Minister Angela Rayner said: “This is about harnessing the untapped potential of the pensions belonging to millions of people, and using it as a force for good in boosting our economy.”
She seemed perfect, at first. Her CV brimmed with all kinds of qualifications. And she had years of experience caring for vulnerable people.
As Sarah Whitaker sat at her kitchen table and looked through the paperwork the care agency had sent her, she knew that Tracy was the one she could trust to look after David, her 89-year-old dad.
Retired businessman David Seal suffered a stroke in the summer and needed more and more support at home.
He was taking a daily cocktail of strong prescription medicines and also needed help emptying his catheter bag because going to the toilet had become difficult recently.
“We need somebody experienced in stroke management and catheter care,” said Sarah. “But we also needed somebody who could drive my dad to the town and back. And somebody who was a very good cook.
“My dad chose Tracy and she arrived the next day.”
Tracy came by train and, on the journey to David’s home, revealed that she could not drive because there was a problem with her licence.
Sarah saw this as a red flag. But that wasn’t all she was worried about.
“We had to teach her how to open and close the catheter because she had never seen one before. And that was a surprise given her experience.”
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It got worse. Tracy couldn’t cook and once served David deep-fried Brussels sprouts for lunch. Sarah was increasingly concerned about the carer’s medicine management skills too.
“She was giving dad pills here there and everywhere. And that’s a problem because if you give my dad a pill, he’ll swallow it. Whatever it is.”
This was far removed from the carer she had read so much about.
Sarah was introduced to Tracy through an introductory care agency, Hampshire-based Access Care. When Sarah got in touch about her concerns, the agency said they were confused too.
They had never had any complaints about Tracy. She was the model carer.
And then one sunny day in early September, as David was being pushed around the village in his wheelchair by his grandchildren, one of them pulled out a mobile phone to capture the happy scene.
“As soon as Tracy saw the camera she stepped out of view as quick as a flash,” said Sarah. “And later my daughter said that it seemed odd that she didn’t want to be on camera.”
Sarah rang the care agency again, who supplied her with a copy of Tracy’s driving licence. She looked at the video again.
“The image we had from the walk and the person in the driving licence photo were two different people.”
The next morning, Tracy – or whoever she was – packed her bags and left.
Sarah was horrified. She was left wondering who had been in her father’s house for nearly three weeks. It started to fit into place; the shoddy catheter care, the bad cooking and the poor handling of medicines.
She contacted the care agency again, who promptly contacted Tracy, who was adamant that she had been in the house caring for David.
Access Care contacted Hampshire Police. But the response was not what they expected.
A police constable replied on 4 November with disappointing news. They explained that officers had “limited lines of enquiry” and that because Tracy had denied the allegation, they would need an “independent witness” to confirm the allegation.
They seemed to be saying that they would not investigate, adding that it would be deemed “not in the public interest” to send a police officer to interview Tracy in person at her home, despite having her address.
The police were clearly not interested and showed no signs of investigating. So as part of our investigation into this story, we tracked down Tracy to an address and decided to pay her a visit. To get her side of the story.
I arrived at a large housing estate and saw Tracy backing her car into the drive at the back. I approached her and said I wanted to speak to her about her work as a carer in David’s home.
At first, she said that she had worked very hard to provide the best care but that the family were not happy. She was very clear that she had lived in the home for nearly three weeks. No question about it.
But when I confronted Tracy with the photo evidence from the sunny village walk, her tone changed. She took in deep breath and sighed.
“I don’t know how to explain this,” she said slowly. “It’s so bad. Very bad. I’m sorry.”
Tracy explained to me that she had asked a friend to do the care job in her place, admitting that her friend was not a trained carer. She said nobody had forced her to do it and she had never done anything like this in the past.
She said she thought she could get away with it because the care agency never checked up on her.
“They [the agency] never met me face to face. They have to do more checks to know who is going in the house.”
I show Sarah the video of Tracy and her astonishing admission. “She was knowingly complicit and sent an untrained carer – a complete stranger – into the house of a vulnerable elderly man who is very ill. The nerve of the woman!”
Sarah did some research and reached out to the care regulator, the Care Quality Commission (CQC). But to her surprise, they said they could not help.
They don’t regulate introductory care agencies like the one Sarah used to hire Tracy.
“I thought it was absolutely incredible that the CQC were not involved and I was very surprised to discover that agencies like this send carers all over the the place but aren’t regulated in any way.”
One of the reasons why the deception was picked up on so quickly is that Sarah lives next door to her dad. And so, we got around to talk to David and I asked him how he felt about having a stranger looking after him.
“I feel very cross about it. I feel fooled and misled,” he said. But David is also clear about another point: regulation. Or lack of it.
“There’s no point in being responsible for the care industry if you’re only dealing with people who are registered with you. It is quite pointless.”
A spokesperson for the Care Quality Commission told Sky News: “We appreciate the distress this incident has caused both Mr Seal and Mrs Whitaker, however as neither introductory agencies or self-employed carers are covered by CQC’s remit we are unable to take action in this case.
“These matters should be reported in the first instance to the local authority safeguarding team who have the remit to investigate the issue and take necessary action.
“Any questions regarding the legal framework for how health and social care is regulated in England is a matter for the government.”
The care sector is big business. Home care services are worth over £12bn per year and rising, according to healthcare analysts LaingBuisson.
The government has written to Chief Executives of adult social care services telling them of their so-called ‘home first’ approach to healthcare, which supports people to live independently at home rather than being cared for in hospital. Just like the kind of care David was receiving.
And as winter comes and pressure increases on the NHS, these kinds of services are relied on more than ever.
“If you can’t guarantee that the person you’re expecting is the person you get then I think the system is very flawed,” Sarah tells me.
A Department of Health and Social Care spokesperson told Sky News: “Our sympathies are with David’s family and friends in this deeply concerning case.
“This government inherited a social care system in crisis. We are committed to building a National Care Service – underpinned by national standards and delivered locally – to improve the consistency of care and ensure everyone can live an independent and dignified life.”
“A healthy NHS and social care system requires strong regulation to ensure patient and user safety and that’s why we are reforming the Care Quality Commission to make sure it is fit for purpose.”
Access Care CEO Tiggy Bradshaw also told Sky News: “We were shocked to hear of this terrible deception and are deeply sorry for what Mr Seal and his family have experienced.
“When we heard of these alarming allegations, we contacted Action Fraud and the police and commenced an urgent safeguarding review. We have been in close touch with the family throughout and will continue to collaborate with the police.
“We have strict protocols in place however these extremely unusual circumstances have given us cause for reflection.
“We are in the process of developing further security checks and procedures for families in receipt of care at home.”
Several days after approaching Hampshire Police for comment, a spokesperson told us they were looking into the case, adding: “Officers are carrying out a number of enquiries and the incident is still under investigation to determine whether any crimes have been committed.”
Sarah meanwhile says she has been left deeply concerned by the incident.
“We knew nothing about this person who was in my dad’s home. For all I know she could have been an axe murderer,” she told Sky News.
“The fact that the carer was able to get away with it for as long as she did put the entire system in doubt.
“If the system can be played this easily, then the system needs to change.”
The second named storm of the season will bring snow, rain and strong winds to parts of the UK this weekend, according to the Met Office.
Hundreds of schools are closed as the storm, named Bert, sweeps in, bringing freezing temperatures and snow over the weekend.
Wind gusts of up to 70mph are expected in some areas as well as the potential of flooding and travel disruption.
Heavy snowfall could bring further disruption to parts of the country while heavy rain is also likely, especially in western parts, the Met Office added.
A number of severe weather warnings have been issued for Saturday and Sunday.
Parts of the UK, however, will keep seeing wintry showers throughout Thursday and Friday, with a new alert issued as it warns of snow and ice for much of Scotland, northern England and parts of western and eastern England and Wales between midday on Thursday and 10am on Friday.
More than 114 schools are shut in the Highland Council area on Thursday due to snow, including Inverness Royal Academy where pupils were told their prelim exams planned for the day will be rescheduled.
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Almost 40 schools in Aberdeenshire are also shut while many others had delayed openings, and in Moray around 12 are closed and others opened late.
It comes after more than 100 schools or nurseries were closed in Scotland on Wednesday because of the weather.
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South of the border, 89 schools are shut in Devon on Thursday, 18 in Dorset and 60 in Cornwall, while in Wales around 10 are closed in Conwy, 18 in Denbighshire and two in Wrexham.
Met Office Deputy Chief Meteorologist Dan Holley said: “Storm Bert marks a shift to much milder air and wintry hazards will gradually diminish through the weekend, but heavy snowfall is expected across parts of northern England and Scotland for a time on Saturday, especially over higher ground, and warnings are in place.”
Heavy rain is expected especially in southern and western parts of the country on Saturday and Sunday, with up 50-75 mm of rainfall expected in areas under a weather warning, but Wales and southwest England could see more than 100mm.
The Met warned of travel disruption and flooding caused by the storm this weekend.
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Former Labour deputy prime minister John Prescott has died aged 86, following a battle with Alzheimer’s, his family has announced.
The former trade union activist and ex-merchant seaman served as MP for Kingston upon Hull East for 40 years and was a key part of New Labour under Sir Tony Blair.
His family said he had “spent his life trying to improve the lives of others, fighting for social justice and protecting the environment”.
Lord Prescott died peacefully, surrounded by relatives at his care home on 20 November.
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The John Prescott ‘punch’ moment from 2001
In a statement released after his death, his wife Pauline and sons Johnathan and David said that representing the people of Hull had been his “greatest honour”.
They said: “We are deeply saddened to inform you that our beloved husband, father and grandfather, John Prescott, passed away peacefully yesterday at the age of 86.
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“He did so surrounded by the love of his family and the jazz music of Marian Montgomery.
“John spent his life trying to improve the lives of others, fighting for social justice and protecting the environment, doing so from his time as a waiter on the cruise liners to becoming Britain’s longest-serving Deputy Prime Minister.
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“John dearly loved his home of Hull and representing its people in Parliament for 40 years was his greatest honour.”
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Former deputy PM John Prescott dies
They continued: “We would like to thank the amazing NHS doctors and nurses who cared for him after his stroke in 2019 and the dedicated staff at the care home where he passed away after latterly living with Alzheimer’s.
“In lieu of flowers and if you wish to do so, you can donate to Alzheimer’s Research UK.
“As you can imagine, our family needs to process our grief so we respectfully request time and space to mourn in private.
The death of John Prescott – the longest-serving deputy prime minister in British history – has sent shockwaves through British politics.
Serving in Neil Kinnock’s shadow cabinet before becoming Tony Blair’s deputy, Prescott was a political giant and an incredibly influential working-class voice in the Labour movement.
The son of a railway signalman and the grandson of a miner, Prescott offered a fresh working-class perspective in stark contrast to Tony Blair’s wealthy Oxbridge background: something that Blair has said undoubtedly contributed to Labour’s electoral success.
Current deputy prime minister Angela Rayner has been compared to John Prescott for providing Starmer with a working-class teammate with a trade union background, but Prescott’s colourful life and authenticity – even when that meant punching a protester for throwing an egg at him – can never be emulated.
Whatever he’s remembered for – from the Kyoto Protocol, being a mediator between Blair and Brown, or perhaps his personal issues – there is no doubt that his career will go down in history as a consequential contribution to the Labour movement.
‘A great man and great servant of country and party’
Lord Prescott served as deputy leader under Sir Tony and was seen by many as a key link to the party’s traditional working-class values amid the modernising push.
The two of them became known as “the odd couple”.
Paying tribute, Sir Tony said he was “devastated” by news of Lord Prescott’s death.
Sir Tony described him as “one of the most talented people I ever encountered in politics” who could “talk in the bluntest and sometimes bluest language”.
He added: “He was from proud traditional working-class stock yet understood instinctively and completely the aspirations of that class and their desire to better themselves.
“It is no exaggeration to say the Labour Party could never have won three consecutive full terms without John.”
Sir Tony continued: “Underneath what could be a fierce exterior, and a manner some undoubtedly found intimidating, beat a loving, kind and compassionate human heart.
“John was as good a friend as you could ever hope to have, with a deep sensitivity, even vulnerability.
“He will deservedly occupy a special place in the pantheon of the Labour leadership; he will be mourned by his many friends and fans around the world and for me personally, today is a day of profound sadness but also immense pride in having known him and worked with him: a great man and great servant of country and Party.”
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Lord Prescott famously punched a protester who threw an egg at him during an election campaign visit in North Wales in 2001.
During much of his time in office, Lord Prescott acted as a mediator between Sir Tony and then-chancellor Gordon Brown.
Mr Brown said: “Few achieve something akin to heroic status in their own lifetime, particularly when having to deal with the compromises of being in government, but John Prescott became – and will remain – a legend of the Labour Party”.
He added: “John Lennon said the working class hero is a difficult thing to be, but I think John would be just fine with being remembered that way.”
He also served as secretary of state for the environment, transport and regions and helped negotiate the international climate change treaty the Kyoto Protocol.
Former US vice president Al Gore worked with Lord Prescott on the Kyoto Protocol in 1997.
He said he had “never worked with anyone in politics – on my side of the pond or his – quite like John Prescott”.
He added: “He possessed an inherent ability to connect with people about the issues that mattered to them – a talent that others spend years studying and cultivating, but that was second nature to him.”
Prime Minister Sir Keir Starmer said he was “deeply saddened” to hear the news of Lord Prescott’s death.
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While a loyal supporter of Sir Tony in office, Lord Prescott subsequently became critical of parts of the legacy left behind by New Labour.
This included denouncing Britain’s involvement in the Iraq War.
He also defended Jeremy Corbyn during his time as party leader in the face of fierce criticism.
He was ennobled in 2010 but ceased to be a member of the upper House in July after facing health difficulties.
He had only spoken once in the chamber since suffering a stroke in 2019, and had not voted since February 2023.
Born in Prestatyn, Wales, on 31 May 1938, the son of a railwayman left school aged 15 to work as a trainee chef, then as a steward on the Cunard Line before entering politics in a career that spanned decades.