The government’s proposed Value For Money (VFM) framework under the forthcoming Pension Schemes Bill is “utterly unworkable” in its current form, former Pensions Minister, Guy Opperman, has argued, urging policymakers to “scrap it and start again”.

Speaking at the Aptia Showcase Event 2026, Opperman said that while much of the Pension Schemes Bill builds constructively on previous policy work, the VFM framework represents a significant flaw.

The Department for Work and Pensions (DWP), Financial Conduct Authority (FCA), and The Pensions Regulator (TPR) launched a consultation on the framework in January.

Under the proposals, pension schemes will be required to publish ‘clear data’ on their performance, costs, and quality of service.

VFM assessments will use a colour rating system, whereby dark green shows strong performance, light green for good value, amber for improvement, and red for poor value.

Opperman warned that while "most of the (Pension Schemes) Bill is right… They (the government) have made a complete basket case of value for money, and they should scrap it and throw it away and start again.

"It is utterly unworkable as they presently propose it.”

Opperman argued that the issues stem from a fragmented regulatory approach, criticising what he described as “government by committee” and a lack of coordination between regulators.

“It’s the madness of having two regulators who don’t talk to each other,” he added, warning that the current structure risks undermining the framework’s effectiveness.

Also pointing to issues with the proposed framework, industry figures have previouslywarned that certain measures could distort comparisons between schemes and risk unintended consequences for savers.

Despite these concerns, Opperman was broadly supportive of the bill's broader direction of travel, noting that many of its provisions - including decumulation reforms, small pots consolidation, collective defined contribution (CDC) schemes, and superfund developments - are continuations of policies initiated under previous administrations.

“On pension policy, they have continued a large amount of policy under successive governments,” he said, adding that around 95 per cent of the bill had gone largely unopposed.

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