Yes, I know, that’ll be a huge surprise to everyone. Gordon Brown’s disembowelling of the pensions system was not to fund the Welfare to Work scheme:

This tax cut is the first component of this Budget’s investment strategy.
The second is a structural reform that will also encourage investment. The
present system of tax credits encourages companies to pay out dividends rather
than reinvest their profits. This cannot be the best way of encouraging
investment for the long term as was acknowledged by the last Government.

Many pension funds are in substantial surplus and at present many companies
are enjoying pension holidays, so this is the right time to undertake a
long-needed reform. So, with immediate effect, I propose to abolish tax credits
paid to pension funds and companies.

That was his justification. Welfare to Work was funded by the windfall tax on the privatized companies.

Puzzling justification though really, isn’t it? I want to increase investment so I’ll lower the returns to saving, meaning that there is less capital to invest. No wonder it all went pie shaped.