The implications for bankrupts of the recent Budget announcement on pensions: have we gone full circle? – 11 Stone Buildings

Posted June 5th, 2014 in bankruptcy, budgets, news, pensions by sally

‘There has long been a tension between two competing public interests: encouraging individuals to save and provide for their financial security in old age on the one hand and providing recourse for creditors in the event of debtors being unable to pay their debts on the other. Historically, the legislative trend has generally been in favour of the creditor. The Welfare Reform and Pensions Act 1999 (“WRPA 99”), which came into force on 29 May 2000, appeared to provide fundamental changes to the relationship between these two competing policies. In 2012, however, when these reforms came before the court in Raithatha v Williamson the result indicated that WRPA 99 may have been far less significant than was previously supposed. If Williamson was correctly decided, then the changes to pension law introduced in the March 2014 Budget will have effectively unravelled those reforms altogether. Alaric Watson explains.’

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11 Stone Buildings, May 2014