UK plans changes to pensions and fracking rules

UK Prime Minister David Cameron has outlined his government’s final legislative programme before next year’s election, with bills promised to change pension rules and make fracking easier.

Queen Elizabeth II, in her role as head of state, read out a speech to the parliament in London listing the plans of the coalition government yesterday.

It featured measures ranging from changes to the electricity market to charges for plastic carrier bags.

The speech listed two pensions bills, one to change tax rules, allowing the over-55s to withdraw their savings, and removing the requirement to buy an annuity, and the other allowing the introduction of Dutch-style collective pension plans to permit savers to cut costs and pool risks.

As part of an infrastructure bill, the government will consult on ways to speed up permission for fracking, meaning companies won’t need separate agreements with every landowner under whose property the process is taking place.

Jean-Christophe Gray, a spokesman for the prime minister, said the government is considering compensation to communities of about £20,000 (€24,600) for each lateral well drilled underneath them.

“The coalition’s introduction of fixed-term parliaments has changed the rules of the game,” Philip Cowley, professor of politics at the University of Nottingham, said.

“Traditionally, the final session in any parliament would be curtailed by an election, so governments can introduce bills designed to attract headlines, knowing they wouldn’t reach the statute book. They can’t do that now.”

With an election a year away, there are a number of measures aimed at shutting down areas in which the British Labour party has attacked the government.

A small business, enterprise, and employment bill will increase penalties for employers dodging the minimum wage and tighten rules on zero-hours contracts, under which staff aren’t guaranteed work.

In his speech to politicians, Cameron confirmed he would support any attempt by one of his party’s rank-and-file lawmakers to introduce a bill legislating for a referendum on membership of the EU.

Such a bill in the last session of parliament ran out of time.

In a bid to halt damage to the environment from the 7bn plastic bags that the government says were used in England in 2012, it will introduce a charge of 5p on each bag issued from October next year.

The levy raised will go to charity and will apply to major retailers.