In its annual report, released today, Pada revealed staff costs of £13.1m alongside other advice and support costs of £17.7m as it moved into its ‘delivery phase’ of operations.
This is currently being funded by a grant-in-aid package from the Government totalling £18.49m as well as a £5.6m loan from the Department of Works and Pensions. In 2008, the scheme had costs of just over £2m.
A spokeswoman for Pada says its expenditure levels are still under budget: “It is important to note the previous report covered a one month period whereas this report covers a 12 month period – hence the apparent large difference in expenditure. One of Pada’s key principles is to minimise the cost of the scheme.”
Pada chief executive Tim Jones says: “I am pleased to report on our progress this year and achievements so far, while remaining mindful of just how far we have yet to go. Success will mean a better quality of life in retirement for millions of people. The importance of this goal drives everything we do.”
Standard Life head of pensions policy John Lawson says it is “completely unfair” for Pada to receive Government aid. He says: “This is supposedly a commercial enterprise, but it is clearly not.
“Will the Government subsidise us to compete with personal accounts? It is a completely unfair proposition because there is no way we can match a £18m taxpayer subsidy.”