The Department for Work and Pensions (DWP) is in the midst of a review of consultancy charges, which it deems a legitimate risk to employees’ pensions pots.
Speaking at the Employee Benefits Pensions and Workplace Savings Summit on 31 January, Bridget Micklem, head of private pensions, policy and analysis at the DWP, explained that the department is working to obtain a coherent picture of consultancy charging practices.
It believes that charges should only be deducted from a pension scheme member’s pot if doing so will result in a tangible benefit.
The DWP is aiming to achieve some clarity on the issue by the spring and, if it finds that existing practices have a detrimental effect, it will look at what it can do to tackle the issue.
Debbie Lovewell-Tuck is a business journalist with 20 years’ experience specialising in pay, reward and HR. She joined Employee Benefits as a reporter in 2003, before becoming editor in 2015. Debbie is also responsible for editorial content across Employee’ Benefits events, including Employee Benefits Live and the Employee Benefits Awards, as well as hosting Employee Benefits’ webinars.View full profile
