UK. DWP guidance nudge claims are ‘pure spin’, says MP
MPs have criticised the Department for Work and Pensions’ (DWP) latest proposals on guidance nudges, saying they lacked determination and would not go far enough to increase uptake.
In the latest hearing of the Pension Schemes Bill, Neil Gray, a Scottish National Party MP, labelled the DWP’s claim that a stronger nudge by providers would significantly increase take up of Pension Wise guidance “pure spin”. Mr Gray said: “[…] the cited Maps (Money and Pensions Service) stronger nudge trials showed only a very small increase in the number of people who actually went on to have a Pension Wise appointment.
“The outcome of the stronger nudge trials was to get people to Pension Wise appointments in less than one in ten cases. It moved them from 3 per cent to 11 per cent.
“A stronger nudge is just not going to be enough, not by a long chalk.”
Last week (October 28), the DWP said it would look to publish regulation which will require providers of workplace pensions to signpost guidance whenever savers look to access or transfer their pots. But it stopped short of making guidance mandatory.
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