Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many people have (a) contacted Action Fraud regarding potential pension scams and (b) booked a Pension Wise guidance session since the start of the covid-19 outbreak.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
In the period March – July 2020 116 reports of pension fraud were received by Action Fraud, compared to 179 for the same period in 2019. In recognition of the potential impact of Covid-19 on individual’s pensions savings the Department convened a cross-government and regulator group, to closely monitor and respond to any increase in transfers and scams. All of the participating organisations have confirmed that to date no evidence has emerged to demonstrate an increase in either transfers or scams, based on their internal monitoring of the industry. Although this is encouraging Government recognises it needs to continue to monitor and react to the changing environment.
To ensure that people are able to fully access support and make informed decisions, a collaborative approach has been taken with the TPR, the FCA and MaPS in communicating to savers, to use Pension Wise or the Pensions Advisory Service channels for guidance before making decisions about retirement. There have been a total of 79,967 bookings for a Pension Wise guidance session between March 1st– October 20th 2020. The government is also taking action with the Pensions Schemes Bill.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what recent assessment her Department has made of the potential merits of implementing a training programme for pension and finance professionals to ensure they can more readily identify scam risks.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
The Government is committed to safeguarding consumer savings. The Government is raising public awareness of scams through ongoing communications directly from DWP and with other organisations.
Joint and independent communications from the FCA and tPR spelling out the dangers, what to watch out for and giving clarity to trustees and providers on the boundaries between guidance and advice have been issued since April this year (https://www.fca.org.uk/news/press-releases/covid-19-savers-stay-calm-dont-rush-financial-decisions). Prior to Covid-19 the FCA and tPR conducted regular campaigns, through the ScamSmart branding, to raise awareness of pension scams and what to watch out for, these have been deemed very successful, over 222,000 visited the ScamSmart website to find out how to identify a scam scheme as a result of the most recent pre Covid campaign, July – November 2019.
In addition, Government is actively monitoring the numbers of transfers and scams and preparing further policy responses. At the onset of the covid-19 pandemic, the Department convened a cross-government and regulator group to closely monitor and respond to any increase in transfers and scams. The group includes DWP, HMT, both the Pensions Regulator and the FCA as well as the Money and Pensions Service and the Pension Ombudsman. All of the participating organisations have confirmed that to date no evidence has emerged of an increase in either transfers or scams, based on their internal monitoring of the industry.
DWP continues to communicate regularly on social media to set out the warning signs of a scam and has made multiple posts referencing Pension Scams and #ScamSmart in total across Twitter, Facebook and LinkedIn in the period March to September 2020.
The Pension Schemes Bill was amended by Government in the House of Lords to add to the example conditions that can be placed on the statutory right to transfer by regulations. This amendment makes it explicit that the regulations can require that in certain circumstances the member demonstrates they have taken information or guidance before the transfer can proceed to ensure they are informed of the risks.
The Government wants to support all pension savers aged 50 and over in the lead up to accessing their pension savings, to make informed choices about their retirement income, which includes making them aware of Pension Wise through communications from their pension scheme trustees. We intend introducing Single page summary and single page risk warnings from age 50 and then every 5 years until the point they access their pension savings.
The Money and Pensions Service (MaPS) conducted trials to establish different ways to encourage more people to take Pension Wise guidance before accessing their pension savings under Pension Freedoms. These trials found that a nudge developed using behavioural science principles significantly increased take-up of Pension Wise guidance among those wishing to access their pension savings under pension freedoms. The evaluation report was published in July 2020. We are working to develop the most effective and proportionate way to implement this nudge to pension guidance. We intend to publish our proposed way forward shortly.
In addition, we have banned cold calling and seek to provide and prosecute and publicise the conviction of all who commit pension scams.
Asked by: Angela Eagle (Labour - Wallasey)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many people have accessed and transferred their pension early since the start of the covid-19 outbreak; and how many of those have been classified as an unauthorised payment from their pension fund.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
This government is committed to safeguarding consumer savings. We have introduced, with other departments, measures that assist all savers to understand their choices and the possible risks of the choices they make along with legislation to protect those most vulnerable to scams.
There is currently no information available about pension unauthorised payments since the onset of the Covid-19 outbreak. This is because administrators of a registered pension scheme must tell HMRC when certain reportable events occur; reportable events include unauthorised payments. The scheme administrator does this by completing and submitting an Event Report for a tax year, these must be received by HMRC by the 31st of January after the end of the tax year to which the Event Report relates. Therefore, reports for the period March to date are not available.
The data available from the industry has so far revealed little evidence of an increase in transfers or scams since the beginning of the Covid-19 outbreak. Similarly, independent regulators report less of a problem. We will continue to monitor and assess if there has been any increase in pension scams activity as a result of the crisis.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, if she will provide a breakdown of the types of pension scams that have occurred since the start of the covid-19 outbreak.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
DWP is working across government and with regulators to monitor and respond to any increases in transfers or pension scams. To date, this monitoring has revealed little evidence to demonstrate an increase in either transfers or scams across the industry as a whole as confirmed by the independent regulator. This has been confirmed by responses from industry. The Government will continue to monitor and respond to any emerging evidence.
The Government established Project Bloom, a cross-government taskforce that brings together law enforcement, government and industry to share intelligence, raise awareness of and the reporting of scams through public communication campaigns, and take enforcement action where appropriate.
Please see links below for more information about the joint statement from Regulators and the Money Advice Service, and help available, produced by the Pension Protection Fund and supported by government.
https://www.fca.org.uk/news/press-releases/covid-19-savers-stay-calm-dont-rush-financial-decisions
https://www.ppf.co.uk/sites/default/files/file-2020-05/COVID-19-and-your-pension.pdf
The Government continues to work with Regulators and enforcement agencies to prevent scams and take appropriate action. In the period March - July 2020, 116 reports of possible pension fraud were received by Action Fraud, compared to 179 for the same period in 2019.
Project Bloom has identified that the methodology of scammers is continually evolving, moving away from the traditional type of theft of peoples pensions through setting up a sham scheme, towards investment related fraud. Investment related fraud includes persuading individuals to invest in ventures that do not exist or using multiple charging structures that the member is not aware of.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, what discussions her Department has had with (a) regulators, (b) pension providers and (c) HMRC on taking steps to encourage pension scam victims to report those scams.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
DWP works with other government departments, regulators, police, enforcement agencies and the pensions industry to raise public awareness of pension scams and encourage the reporting of scams by victims. The Government established Project Bloom, a cross-government taskforce that brings together law enforcement, government and industry to share intelligence, raise awareness of and the reporting of scams through public communication campaigns, and take enforcement action where appropriate.
Project Bloom monitors the evolution of scam typology and the measures that all agencies including providers and financial professionals can take to help prevent scams.
The Government continues to drive forward and endorse better messaging from both TPR and FCA to the public and industry on how to identify a scam. Government helped facilitate and supported the joint statement by regulators at the outset of the Covid-19 pandemic, urging individuals not to make hasty pension decisions.
https://www.ppf.co.uk/sites/default/files/2020-05/COVID-19-and-your-pension.pdf.
The Government is also using social media to further endorse the messaging from the regulators, with posts referencing Pension Scams and #ScamSmart in total across Twitter, Facebook and LinkedIn in the period March to September 2020.
The ScamSmart campaign and website have been live since 2014. It started by focusing on just Investment Scams and has grown to incorporate Pension Scams. The aim of all the activity under the ScamSmart brand is to alert consumers to the warning signs that indicate a possible scam is taking place and to drive action, getting consumers to use the FCA Warning List tool and the Register. The national media campaign which ran from July to November 2019 resulted in excess of 220,000 people visiting the website.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the Home Office:
To ask the Secretary of State for the Home Department, how many people have contacted Action Fraud regarding potential pension scams since the start of the covid-19 outbreak.
Answered by James Brokenshire
The Government is committed to protecting people from pension scams and pursuing those who perpetrate these scams.
In the period from 24 March 2020 to 25 September 2020, 166 reports of pension fraud were received by Action Fraud.
The latest available data on Action Fraud reporting, covering the year to March 2020, can be found in table A5 of Crime in England and Wales on the ONS website, currently available here:
We have launched a gov.uk page on coronavirus-related fraud and cybercrime, including easy-to-follow steps for people to better protect themselves from online scams, as well as signposting all relevant advice and tips:
https://www.gov.uk/government/publications/coronavirus-covid-19-fraud-and-cyber-crime
Victims in England, Wales and Northern Ireland are encouraged to report these crimes directly to Action Fraud, the centralised reporting centre for fraud and cybercrime. Those in Scotland should report directly to Police Scotland, via the 101 service.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what recent guidance he has issued to HMRC on the tax treatment of the victims of pension scams.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
We take the issue of pension scams very seriously. The government is committed to protecting people from pension scams and pursuing those who perpetuate pension scams wherever possible.
In 2012 the government established Project Bloom, a cross-government taskforce currently led by the Pensions Regulator (TPR), to tackle scams and identify emerging threats.
HMRC will continue to come down hard on scammers who we identify, working closely with the Pensions Regulator and Financial Conduct Authority in a cross-agency approach.
HMRC does not hold an estimate of the number of breaches of tax law which were made as a result of pension scams.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what estimate he has made of the number of breaches of tax law which were made as a result of pension scams in the last 12 months for which figures are available.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
We take the issue of pension scams very seriously. The government is committed to protecting people from pension scams and pursuing those who perpetuate pension scams wherever possible.
In 2012 the government established Project Bloom, a cross-government taskforce currently led by the Pensions Regulator (TPR), to tackle scams and identify emerging threats.
HMRC will continue to come down hard on scammers who we identify, working closely with the Pensions Regulator and Financial Conduct Authority in a cross-agency approach.
HMRC does not hold an estimate of the number of breaches of tax law which were made as a result of pension scams.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the HM Treasury:
To ask the Chancellor of the Exchequer, what discussions his Department has had with HM Revenue and Customs on its approach to tax rule breaches arising from pension scams.
Answered by John Glen - Paymaster General and Minister for the Cabinet Office
We take the issue of pension scams very seriously. The government is committed to protecting people from pension scams and pursuing those who perpetuate pension scams wherever possible.
In 2012 the government established Project Bloom, a cross-government taskforce currently led by the Pensions Regulator (TPR), to tackle scams and identify emerging threats.
HMRC will continue to come down hard on scammers who we identify, working closely with the Pensions Regulator and Financial Conduct Authority in a cross-agency approach.
HMRC does not hold an estimate of the number of breaches of tax law which were made as a result of pension scams.
Asked by: Neil Gray (Scottish National Party - Airdrie and Shotts)
Question to the Department for Work and Pensions:
To ask the Secretary of State for Work and Pensions, how many people have (a) accessed and (b) transferred their pension early since the beginning of the covid-19 outbreak which is then potentially classified as an unauthorised payment from their pension fund.
Answered by Guy Opperman - Parliamentary Under-Secretary (Department for Transport)
This government is committed to safeguarding consumer savings. We have introduced, with other departments, measures that assist all savers to understand their choices and the possible risks of the choices they make along with legislation to protect those most vulnerable to scams.
There is currently no information available about pension unauthorised payments since the onset of the Covid-19 outbreak. This is because administrators of a registered pension scheme must tell HMRC when certain reportable events occur; reportable events include unauthorised payments. The scheme administrator does this by completing and submitting an Event Report for a tax year, these must be received by HMRC by the 31st of January after the end of the tax year to which the Event Report relates. Therefore, reports for the period March to date are not available.
The data available from the industry has so far revealed little evidence of an increase in transfers or scams since the beginning of the Covid-19 outbreak. Similarly, independent regulators report less of a problem. We will continue to monitor and assess if there has been any increase in pension scams activity as a result of the crisis.