Pensions master trusts moves welcome, LISAs impact still a concern

• Automatic enrolment: Government Response to the Committee's Eleventh Report of 2015-16
• Automatic enrolment: Government Response to the Committee's Eleventh Report of 2015-16 (PDF 148KB)
• Inquiry: Pensions automatic enrolment
• Work and Pensions Committee

In summary 

• The Government agrees that there is a need for new legislation to tackle the problem of unstable Master Trusts. The Government has committed to new provisions to protect savers in Master Trusts, including millions of automatically enrolled savers. The Committee will be taking a very close interest in the upcoming Pensions Bill.
• The Committee recommended that communications aimed at small businesses be more direct and focus on the financial consequences of non-compliance. The Government  has agreed to develop and test messaging about the consequences of non-compliance for the next stage of the campaign.
• The Committee welcomes the Government's statement about the potential liability of employers in making scheme choices. Employers should be able to evidence that they have had due regard in selecting a scheme.
• The Committee remain concerned about the potential impact of the LISA on auto enrolment and await the Government's Impact Assessment.
• The Committee looks forward to reviewing the outcomes of the 2017 review of automatic enrolment.

Further information

• About Parliament: Select committees
• Visiting Parliament: Watch committees

Image: iStockphoto