King's Speech 2024: key points affecting your money

Changes to pension funds, bolstering workers' rights and cutting back on housing red tape were among the headline announcements.

King Charles has outlined in his speech to Parliament Labour's main focus areas after the party’s victory in last week’s General Election.

The new Government’s initial plans include major changes to pensions, employment rules, tenants’ welfare, and housebuilding.

But, while the speech set out its broad legislative agenda, it doesn’t include everything, according to Myron Jobson, senior personal finance analyst at Interactive Investor.

“Expect more detailed financial measures and announcements to be unveiled in the next fiscal event, which is likely to be in the Autumn,” he said.

So, what are the key points that will affect our finances? Here we run through the main policy proposals about pensions, housing and employment.

Pension Schemes Bill

This was an unexpected addition and it's been claimed the measures could add an extra £11,000 to pension saver's pots over time.

The key points include automatically bringing together individual’s deferred small pension pots into one place and introducing a test to prove that trust-based Defined Contribution schemes offer value for money.

Pension schemes will also be required to offer retirement products so people have a pension and not just a savings pot when they stop work.

Helen Morrissey, head of retirement analysis at Hargreaves Lansdown, said the positives were more simplicity and greater flexibility.

“Boosting retirement outcomes through a leaner, more efficient system is at its heart,” she said.

"Government estimates that introducing these measures could boost the average person’s pension pot by 9% over the course of their career.”

Employment Rights Bill

Labour is also planning changes to the jobs sector – and that includes banning exploitative zero-hour contracts.

This should help ensure workers have the right to a contract that reflects the number of hours they regularly work to end one-sided flexibility.

Parental leave, sick pay and protection from unfair dismissal will also be available from day one on the job for all workers.

Statutory sick pay will be strengthened by removing the lower earnings limit.

Flexible working would also become the default for all workers starting a job, with employers required to accommodate this as far as is reasonably possible.

Other elements include protecting new mothers by making it unlawful to dismiss a woman who has had a baby for six months after her return to work, except in specific circumstances.

Planning and Infrastructure Bill

This bill aims to shake up the planning system at a local level which can be notoriously slow-moving and can see applications languishing for months.

The Bill would improve the decision-making process by modernising planning committees. Currently, only 9% of local planning authorities make more than 70% of decisions within eight weeks.

There would also be a focus on increasing the capacity of authorities to improve performance and decision-making. It's hoped this will provide a more predictable service to developers and investors.

More broadly, Labour aims to simplify the consenting process for major infrastructure projects, including accelerating upgrades to the national grid and boosting renewable energy.

There will also be a move to ensure compensation paid to landowners in compulsory purchase situations is fair but not excessive.

Guy Gittins, chief executive of Foxtons, believes the proposals are positive.

“The setting of new delivery targets, coupled with a more streamlined planning process, should help to provide the structure required to increase the supply of new homes reaching the market,” he said.

The Renters’ Rights Bill

This is set to overhaul the private rented sector and give tenants more rights. It includes abolishing Section 21 ‘no fault evictions’ to increase tenant security.

Tenants’ rights and protections will also be strengthened, such as empowering them to challenge rent increases designed to effectively force them out.

They will also be allowed to request a pet, which landlords must consider and can’t unreasonably refuse, although they can ask for insurance to cover potential damage.

It will also be illegal for landlords to discriminate against tenants receiving benefits or those with children when deciding to let their properties.

While anything improving tenant welfare is positive, there weren’t many positives for the nation’s landlords, pointed out Sián Hemming-Metcalfe of Inventory Base.

“The announced initiatives remain predominantly tenant focussed, with little consideration for those providing the rental accommodation we so sorely need,” she said.

Other elements

Of course, there were other measures of note in the speech. For example, the Children’s Wellbeing Bill will result in free breakfast clubs in every primary school.

There will also be a limit to the number of branded items of uniform and PE kits that a school requires to bring down costs for parents.

The King’s speech also had good news for commuters with the Railways Bill pledging to create a unified and simplified rail system that focuses on improving services for passengers.

Initially, this would enable contracts to be brought back into public ownership as they come to an end before comprehensively reforming the entire sector.

Labour plans to bring the management of the network – and delivery of passenger services – under a single body known as Great British Railways. Reforms will include a simpler ticket system.