King’s Speech 2024: Pension reforms, housebuilding and Great British Energy - here’s what has been announced

King Charles has outlined the Labour government's priorities for the year ahead, in his second King's Speech as monarch.

The speech outlined 40 bills that ministers intend to pass into law during the next year-long session of parliament.

It is the first such blueprint of Keir Starmer's government, and is an important statement of intent for the newly-elected party after its landslide victory in July and more than 14 years of Conservative rule. 

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The government said the package of bills will focus on growing the economy through "better transport, more jobs and turbocharging building of houses and infrastructure – helping to make every part of the country better off”.

Below, we go through the key points of the King's Speech that may impact your money and finances.

Key points from the King's Speech

King Charles says the government will 'get Britain building'. In its election manifesto, Labour pledged to reform the system to help build 1.5 million new homes over the next five years. The share prices of UK housebuilders jumped on the day after Labour's victory, with Vistry, Persimmon, Taylor Wimpey, Barratt and Berkeley all finishing the day higher. 

A Pension Schemes Bill will also be introduced, bringing in new rules and requirements for private-sector pension schemes. The government says the bill will help more than 15 million people who save in private-sector pension schemes to get better outcomes. It adds that the bill could enable an average earner, who saves over their lifetime in a defined contribution scheme, to have £11,000 of extra cash in their pension pots.

The government says the bill will enable small pension pots to be automatically combined into one place, helping to get better returns and helping savers keep track of their pensions. Becky O’Connor, director of public affairs at PensionBee, says: “Millions of people are currently not saving enough for retirement, so it’s extremely encouraging to see pensions at the top of the new government’s agenda. 

"The automatic consolidation of small pots is a crucial measure that should help workers keep track of their old pensions and reduce the fees they pay, positively impacting their retirement outcomes.”

Separately, a bill will be introduced to set up a new publicly-owned power company, Great British Energy, headquartered in Scotland, which will help speed up investment in renewable energy. In its manifesto Labour said it plans to pay for this using a windfall tax on oil and gas companies. A temporary windfall tax known as the Energy Profits Levy was already in place under the Conservatives, but Labour has previously indicated it could increase the levy from 35% to 38%.

The much-trailed removal of the VAT exemption for private schools will also be enacted. This, the King says, will fund 6,500 new teachers for the state system. According to the annual census from the Independent Schools Council, school fees increased 8% for the 2023-24 academic year, bringing the cost of sending a child to a private day school to £18,000 a year on average. Once VAT is added, that cost will jump more than £3,600 to £21,600.

The King says the government will additionally introduce legislation to "give greater rights and protections" to those renting - including "ending no-fault evictions".

What is the King's Speech?

Although it is King Charles who delivers the speech, it is Starmer's government that writes it, with the intention of presenting his party's policies and proposed legislation for the forthcoming parliamentary session.

While a parliament - which is the period of time between general elections - can run for up to five years, a new parliamentary session is typically launched annually.

The King delivered the last one for the Conservatives in November, which included a failed tobacco and vapes bill that intended to deliver plans for a phased ban on smoking.

There is not anything legally binding about the speech. It can present bills that never actually become law. Bills can also be passed down the line by the government that were not included in the speech.