Oral Answers to Questions

Jesse Norman Excerpts

Monday 14th October 2013 Commons Chamber

[Esther McVey]

There is one point to clarify: pensioners are exempt. If people could get the facts right, it would work better.

[Jesse Norman (Hereford and South Herefordshire) (Con)]

14. What steps the Government are taking on pension charges.

[The Minister of State, Department for Work and Pensions (Steve Webb)]

We have already banned consultancy charges in automatic enrolment schemes and, in the light of the recent report by the Office of Fair Trading, we will shortly be publishing a consultation setting out plans for a cap on pension scheme charges.

[Jesse Norman]

It is extremely difficult for pensioners, and indeed fund trustees, to obtain accurate and timely data about transaction costs, which can have an enormous impact on fund performance. Does the Minister share my view that managers of both private and public funds should be required to publish that information?

[Steve Webb]

My hon. Friend highlights the important point that we need a great deal more transparency about the many different pension scheme charges—the OFT report identified 18 different sorts of charges. We will be looking at its recommendation that the fees he refers to should be reported to governance committees, which will be best placed to act upon them.