Industry demands UK government ‘stands by promises’ on pensions dashboard
The UK’s Department for Work and Pensions (DWP) plan to ‘kill off’ the pensions dashboard scheme has caught the industry by surprise, as the sector demands that the government stays on track with the project.
Esther McVey (pictured), who was appointed welfare secretary in January, has moved to kill the project that would help millions of people keep track of their pensions online, according to The Times newspaper.
She believes the project should be provided by the private sector and is seeking to ditch state efforts when the parliamentary summer recess begins.
The DWP has said reports that the pensions dashboard project would be scrapped are pure “speculation”. Despite the assurance, the industry remains cautious.
“If the Government does scrap the Pensions Dashboard it will be a huge blow to millions of savers. Many people already have defined contribution pensions from old jobs scattered across various different schemes, alongside bits of defined benefit entitlement and state pensions too,” Tom Selby, senior analyst at AJ Bell, said.
“There is also a broader issue here of trust between the Government and the pensions industry. It was the Government that told the industry it needed to develop a workable Pensions Dashboard model and deliver it by 2019. Huge amounts of time, effort and money have been dedicated by Association of British Insurers members to make that happen, with wide engagement from platforms, charities, advice firms and others.
“If the DWP is now going to pull the plug at the eleventh hour then the industry will legitimately question whether involvement in future such projects is really worth it.” (continues…)