Rachel Reeves accused of new error over £425 billion pensions reform

Rachel Reeves has come under fire over her grasp of basic details after giving incorrect information about her £425 billion overhaul of local authority pensions.

The Chancellor was taken to task after making what critics called a blunder when questioned by peers about one of her flagship plans to unlock investment from council pension pots in a bid to boost the British economy.

She claimed the Local Government Pension Scheme (LGPS) is currently managed by “96 different administering authorities” – when the correct figure is 86 – and wrongly stated the number of investment pools would be cut to “eight”.

In fact, the reforms will reduce the current eight pools to six under new rules that will force two pension pools – covering many Tory shire counties in southern England – to be wound up or absorbed elsewhere by next March.

The Conservatives' Shadow Business Secretary Andrew Griffith said: “Shockingly the Chancellor's grasp of detail is no better than when writing her CV.

"When she's writing such big cheques with taxpayers' money, it's no time to be loose with your numbers.”

The error follows previous criticism over Ms Reeves’ professional history, after she was accused of exaggerating her time at the Bank of England on her LinkedIn profile.

The blunder came during a grilling by former Tory Chancellor Lord Lamont at the Lords Economic Affairs Committee, as Reeves was flanked by two Treasury officials and reading from extensive briefing papers.

The Chancellor has until August 6 to formally correct the record in Hansard, the official parliamentary transcript.

The planned LGPS overhaul is part of a wider agenda to push British pension money into UK infrastructure and growth projects.

Reeves has pitched the reform as a critical step in driving homegrown investment and revitalising the economy, with the consolidation of funds intended to increase scale and efficiency.

The changes could have wide-ranging implications for millions of council workers, including teachers and civil servants, who are members of the LGPS – one of the largest defined-benefit schemes in Europe.

However, the policy has raised concern in some quarters. One pensions expert warned last week that the forced consolidation of pools could trigger disruption and higher costs for some funds.

The Treasury was contacted for comment and confirmed there will be 6 pools