The industry must work to ensure that the pensions dashboard is appropriately funded and that providers are not “free-riding” on the product, Royal London director of policy Steve Webb has said.

Speaking at the launch of the Which? dashboard report today, 20 February 2018, Webb, among other industry commentators, discussed possible funding strategies for the anticipated pensions dashboard.

The industry panel agreed that a levy to fund the dashboard would be one possible way to ensure fairness.

“I think the levy is the best solution in the sense that so far it has been the good guys that have paid, with a coalition of the willing sticking money in to get it as far of it’s gone,” Webb explained.

“I think it is important to avoid free-riding… in a sense the whole industry potentially benefits from this so everyone should pay in…the clean way is industry-wide so it will
have to be TPR or FCA regulating this.”

Aviva strategy projects director James Ward agreed that there is a need to avoid free-riding and that a levy “feels like the right way of doing it”.

When asked how much will be needed to get the dashboard up and running, DWP director Julie Gillis who is leading the department’s feasibility study noted she is unable to give a conclusive figure at present. These ideas and figures will be set out in the study that is to be published at the end of March, she said.

“A levy is certainly one area we are exploring”, Gillis added.

The DWP's feasibility report on the dashboard is set to be published at the end of March, provided that it is not hindered by Brexit negotiations.

Share Story: