Opposition parties say the Government should be bound by the regulations applying to the industry – regulated projections – warning there is a risk of the mother of all misselling scandals.
Much centres on means-testing, which the Tories say could take a bigger bite out of some people’s savings than the two for one offer implies.
Meanwhile the Department for Work and Pensions is locking horns with the Pensions Policy Institute over the numbers affected by means-testing under the scheme. The PPI says up to half will be means-tested by 2050 but the DWP puts the figure at around 30 per cent.
All this, say Government critics, is made worse by auto-enrolment and the whole scheme could be undermined.
With a launch date of 2012, there is still time for the numbers to be checked out by an independent body so that the new scheme does not launch on the back of false promises.