Pension Wise is set receive more Government funds after the Treasury pledged an extra £19.5m in 2015/16 to help meet the demands of the new pension freedoms.
The Budget document says: “Additional funding of £19.5m in 2015/16 will be provided to support the new pension freedoms and the new pensions guidance service, Pension Wise. This funding will extend the availability of state pension statement and pension tracing services.
“It will also provide for extra delivery capacity for Pension Wise: the Government has put plans in place in case there is a need to draw on Department for Work and Pensions resources to help manage any initial spike in demand for the service.”
It is not clear whether advisers will face extra costs as a result of the pledge, or whether the funds will come from Treasury coffers.
In January, the Treasury said advisers will be forced to pay over £4m towards the cost of funding the guidance service in 2015/16.
Advisers are set to pay 12 per cent of the running costs of Pension Wise, which until today equated to £4.2m based on the Government’s £35m estimate.