Pensions Dashboard

Patricia Gibson Excerpts

Wednesday 6th February 2019 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I thank the hon. Member for Hendon (Dr Offord) for initiating the debate. We have heard today, and I think we can all agree, that a pensions dashboard is a positive step. The utility of an online tool that shows users facts and figures about their pensions, such as how much money they can expect their pension pots to hold, is clear, particularly in view of the fact that research shows that 47% of the UK’s population do not know how much their pension pots contain. Given that people have, on average, about 11 jobs in their lifetime, pension pots can be challenging to keep track of, as we have heard.

I know from my own constituents that there was some alarm when the UK Government appeared to distance themselves from the pensions dashboard pilot, before going on to announce that they would introduce multiple pensions dashboards. Nobody would argue that the UK Government should not work in partnership with the pensions industry to deliver a pensions dashboard, but it really should be the Government’s responsibility. For the purposes of clarity and simplicity, there should be only one dashboard. If, as is proposed, there are multiple dashboards, the only thing we know for sure—and experts in the industry agree—is that there will be confusion and risk, and the whole thing may become ineffective. Ultimate responsibility for the delivery of a clean, simple, comprehensive and user-friendly pensions dashboard must rest with the Government and not the pensions services sector.

A proper pensions dashboard would allow people to see the value of their state, occupational and private pensions in one place, thereby helping them to keep better track of their pension income. In my correspondence and communication with the Minister on this matter, he has demonstrated no firm commitment to ensure that state pension data is included from the outset. I am keen to hear, unequivocally, that that has been reconsidered.

The Minister has offered me no commitment that providers will be compelled through legislation to contribute information or supply data to a pensions dashboard, as the hon. Member for Eastbourne (Stephen Lloyd) pointed out. I am keen to hear that the Minister has also reconsidered that. According to experts in the field, not compelling providers to supply information will mean that the most important pensions data is not captured by the dashboard. It seems that private companies will develop a model for themselves. Now I hear that the pensions industry will take a lead on this matter. That risks the entire dashboard being incomplete and far less useful than it should be.

Many pensions experts have expressed concern that without strong commitment from the Government, the project may fail in its aims. If there is missing data in the pensions dashboard, it will be as useful as a recipe with only some of the ingredients listed. It seems that the UK Government will merely facilitate a dashboard, which I take to mean—perhaps I am wrong and the Minister will correct me—that it will be entirely in the hands of private companies and the information it contains may well be incomplete.

I know that the Government think that their plans for dashboards are revolutionary and radical—or transformative, as the hon. Member for Clacton (Giles Watling) said—and it is true that the potential is there, but I fear that it will not be met. I remind the Minister that a single dashboard is essential, not only for the reasons I have already given, but because it will provide a safeguard against scammers through restricted access. We know that consumers who have been scammed have been tricked out of an average of £91,000 of their pension savings. Those who work in this field have warned that unless the public are absolutely clear how many dashboards there are, multiple dashboards could make it easier for scammers to trick the public into divulging personal data, despite what the hon. Member for Hendon said.

We know that data security will be key in giving consumers confidence to use the dashboard to plan their retirement. I heard what the Minister had to say about data security, but I believe that there are ongoing concerns. I ask the Minister to take those concerns on board and to ensure that all those who are retired or are planning to retire can have confidence in a single pensions dashboard that helps to support their understanding and management of their financial future. I believe that the Government must have ultimate responsibility for this, and they must not be seen to abdicate that responsibility to the private sector, given all the concerns I have raised.