Pensions minister Steve Webb will today outline plans to introduce minimum quality standards for automatic enrolment.
The Government had originally planned to introduce the standards – including a possible 0.75 per cent cap on charges – in April this year but delayed the reforms to give businesses more time to prepare.
Webb will make a statement in the House of Commons later today detailing the Government’s proposals.
It remains unclear at what level the Government plans to set any charge cap, when it will be introduced or whether transaction costs will be included. The original DWP consultation set out three possible charge caps – 0.75 per cent, 1 per cent or a two-tier “comply or explain” model.
The proposals are also likely to include a ban on active member discounts and minimum governance requirements for auto-enrolment. Webb could also take action to prevent schemes with in-built adviser commission being used for auto-enrolment.