In the Work and Pensions Select Committee’s third report of Session 2017-19, which the Committee produced following its inquiry into whether pension reforms are achieving their objectives, the Committee recommended amendments to the Financial Guidance and Claims Bill. These amendments included proposals to enable a ban on pensions cold calling to be brought in, and to require people to receive or expressly refuse guidance before they can access their pension pot.
This response document sets out the Government’s response to the two recommendations made by the Committee.
Banning pensions cold calling
The Government agrees with the Work and Pensions Select Committee that tackling pensions cold calling is an extremely important issue and welcomes the proposals.
The Government has restated its commitment to delivering a ban on pensions cold calling quickly and effectively through the passage of the Financial Guidance and Claims Bill. However, as stated by the W&P select committee, there are flaws to clause 4 of the Bill that need amendments. The Government agree with the proposed amendments and intend to make some additional ones to ensure that the ban on cold calling and be brought into effect quickly and effectively.
Increasing take-up of guidance
Government agrees with the Committee on the need to increase take-up of free, impartial guidance and is committed to finding ways to reach more people and continue to deliver an effective service.
Amendments to the Bill have been made that closely align with the recommendations of the W&P select committee. The aim of these is to seek to strengthen the nudge towards taking guidance.
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