Oral Answers to Questions

Gareth Johnson Excerpts

Tuesday 19th January 2016 Commons Chamber

[Harriett Baldwin]

Far from agreeing with the hon. Gentleman, I must say that the Government are finding ways to put the team on a sustainable basis to continue the valuable work it does to protect people from illegal money lending.

[Gareth Johnson (Dartford) (Con)]

T1. If he will make a statement on his departmental responsibilities.

[The First Secretary of State and Chancellor of the Exchequer (Mr George Osborne)]

The core purpose of the Treasury is to ensure the stability and prosperity of the economy.

[Gareth Johnson]

High exit fees act as a disincentive for people to take advantage of flexible pensions, so does the Chancellor agree that tackling these high fees is essential to give people freedom over their own pensions?

[Mr Osborne]

My hon. Friend raises an important issue. The pension freedoms we have introduced have been widely welcomed, but we know that 700,000 people who are eligible face some form of early exit charge. The Government are not prepared to stand by and see people being either ripped off or blocked from accessing their own money by excessive charges. We have listened to the concerns and the newspaper campaigns that have been run. Today, we are announcing that we will change the law to place a duty on the Financial Conduct Authority to cap excessive early exit charges for pension savers. We are determined that people who have done the right thing and saved responsibly should be able to access their pensions fairly.