The Pensions Dashboards Programme delay announced last week is “deeply frustrating”, according to a former pensions minister.
Pensions Minister Laura Trott revealed on Thursday that the 31 August deadline will be missed.
She said there will need to be a “reset” to the Pensions Dashboards Programme timetable but gave no clear indication of when it will see the first testing with legislation needed to implement a new timetable.
She said the DWP will legislate “at the earliest opportunity” to amend the timing of the obligations to provide clarity to schemes.
Martin Willis, principal at Barnett Waddingham, said: “The delay is obviously not the ideal outcome, but it should set the scene for a more robust system when it does come around to launching.”
He said there is a lot riding on the success of the pensions dashboards, and a high amount of complexity associated with implementing the required infrastructure, so “a delay is ultimately better than a failed launch.”
Jon Pocock, pensions dashboard delivery manager at Broadstone agreed, saying: “This phase of the project is less of a pensions issue and more of an IT matter.”
He said: “it is a wise announcement given the technological challenge faced creating a system that can securely connect individuals to literally thousands of schemes.”
He said it is much better to take stock now rather than wait until it is too late to flag up issues.
But LCP partner and former pensions minister Steve Webb was more scathing, saying the delay was “deeply frustrating.”
He said the Government must ensure that any delay is kept to an absolute minimum.
he said: “The lack of a firm new timetable will leave industry in limbo and this uncertainty must be resolved as soon as possible.”
Lily Megson, policy director at My Pension Expert, agreed the delay is a “disappointing turn of events.”
She said that if the Pension Dashboard is facing indefinite delays, the government must ask itself what further support can be provided in the interim.
She said: “One option could be ensuring all consumers are aware of independent financial advice.”
Yvonne Braun, director of policy, long term savings, health and protection, at the Association of British Insurers, said it’s right that the regulatory deadlines for providers are pushed back in line with this delay.
She said there needs to be enough time for testing and onboarding, with the industry closely involved and learning shared widely, to ensure that dashboards work for consumers and that they can fulfil their potential.
She added: “It is also important that work to help firms prepare to connect should continue during this reset.”
The Pensions Dashboard Programme is under the supervision of the Money and Pensions Service.
