Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
Government and regulators consistently fail to adequately support individuals making complex financial decisions.
Conclusion
This committee has previously found similar issues with how government provides or oversees support for people making complex or long-term financial decisions, including through the regulation of independent financial advice. Most recently, our inquiry last year into the British Steel pension scheme found that pensions regulators had failed to provide adequate information and support to scheme members to make decisions within tight deadlines, leading to unsuitable financial advice that caused serious financial harm. We concluded that the regulatory system had left pension scheme members open to being manipulated and taken advantage of by unscrupulous financial advisers, and that regulated financial bodies were still not clear on what was expected of them.38
Government Response Summary
The government agrees with the recommendation and will inform the Committee of actions taken to support informed pension decisions. They cite recent steps like the Stronger Nudge to Pensions Guidance, national mid-life MOT delivery, and new regulations for Pensions Dashboards.
Government Response
Accepted
HM Government
Accepted
4.1 The government agrees with the Committee’s recommendation. Target implementation date: September 2023. 4.2 The government recognises that decisions about pensions can be complex and significant. The government will write to the Committee setting out the action it is taking to support people to make informed decisions about their pensions by encouraging the use of appropriate advice and guidance and reducing the complexity of decisions savers are required to take. 4.3 The government has recently taken significant steps to support people to make informed decisions about their pensions. The Stronger Nudge to Pensions Guidance ensures no-one accesses Defined Contribution pension savings without receiving Pension Wise guidance, or actively opting out of receiving it. The government is delivering the mid-life MOT in Jobcentre plus offices nationally; employers in the North East, East Anglia, and Devon and Cornwall through private sector providers; and launched an improved digital service in July 2023. The mid-life MOT provides and signposts to guidance around careers, health and finances, including pensions. 4.4 On 19 July 2023, the government made regulations with a new approach to delivery of Pensions Dashboards that allows the government to work more collaboratively with the pensions industry. The government remains as committed as ever to making pensions dashboards a reality and is ambitious about their delivery.