Question to the HM Treasury:

To ask Mr Chancellor of the Exchequer, what discussions his Department had with representatives of the annuities industry before taking the decision to (a) allow the sale of annuities and (b) revoke that policy; and when did such discussions take place.

Following the Chancellor’s announcement of pension freedoms at Budget 2014, several organisations contacted the Government to suggest ways these flexibilities could be extended to existing annuity holders. These suggestions led to HM Treasury having discussions with a range of potential market participants, including annuity providers, about the prospect of a secondary market in annuities. These discussions culminated in the announcement at March Budget 2015 that the Government would create the conditions to allow a secondary market in annuities to develop.

Throughout the development of the policy the Government continued to engage extensively with the pensions and investment industry, consumer groups and financial regulators on how to create a competitive secondary market in annuities.