Autumn Budget 2018: The government will provide an additional £5 million in funding in 2019-2020 to help bring the pensions dashboard to fruition.
Chancellor Philip Hammond (pictured) confirmed in his Autumn Budget 2018 speech, delivered on Monday 29 October, that the Department for Work and Pensions (DWP) will consult later this year on the detailed design for the pensions dashboard, as well as explore how an industry-led approach could utilise industry innovation while still protecting pension members.
The DWP plans to work closely with both the pensions industry and financial technology firms throughout this process.
The pensions dashboard, currently in development, will be an online tool that enables individuals to see all of their pension pots, including their state pension, in one place.
Scott Finnie, product architect at Hymans Robertson, said: “We would strongly urge the government to direct its energy and finances towards establishing the data standards necessary for the dashboard concept to flourish. By doing so, it will facilitate innovation in the consumer applications available. It will allow established providers and new entrants alike to deliver a range of intuitive dashboards and tools to engage consumers in their pension provision. Those innovative applications are the visible face of the dashboard; the data standards are the foundation. By focusing on the data standards, the government will equip and encourage industry to deliver better retirement outcomes for UK consumers.
“We are very supportive of the pensions dashboard announcement in [the] budget and welcome the financial commitment of £5 million. Open banking shows that industry led, government-supported initiatives do lead to innovation that benefits consumers, so this support will be fundamental to its success.”
Steve Webb, director of policy at Royal London, added: “It is a real step forward that the government has indicated that state pension data will be included in the design of what it calls pension dashboards. This greatly increases the prospect of dashboards which cover all the key pension information which consumers need to know. The additional £5 million a year for the DWP in 2019-2020 is also a welcome symbol of the fact that the government is committed to taking this agenda forward, albeit more slowly than we would have wished.”