The Government has dashed hopes of a compromise on the maximum 1 per cent charge for stakeholder pensions which would have made provision for advice.
The latest paper, which specifically addresses the advice issue, has been branded a fudge by the pensions industry.
The paper repeats the hardline stance, saying that people who want advice beyond the vaguely-defined 'basic advice' must pay a fee for it.
This line is backed by the newly appointed pensions minister Jeff Rooker in an interview with Money Marketing this week.
The move flies in the face of research which shows the income groups at which stakeholder is aimed who earn between £9,000 and £18,500 will not pay fees.
Rooker says: "Where advice charges are made it will have to be a fee which is totally transparent. Anyone using an IFA shouldn't be materially disadvantaged by being fed a line which could be based on commission.
"There are people who say they can run these schemes including advice for 1 per cent."