DWP in consultancy charge review

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.