Conservative peer Lord Howard Flight has written to pensions minister Steve Webb warning the ban on consultancy charging is “illogical” and could “kill” group personal pension plans.
Webb banned consultancy charging on auto-enrolment schemes in May after calls from the department for work and pensions select committee, consumer body Which? and the Trade Unions Congress.
Former shadow Treasury financial secretary Flight says the ban has called on the Government to rethink its decision.
He says: “The DWP has gone completely over the top on its rules on consultancy charging. It is completely killing group personal pension schemes. It is wrong.”
Affluent Financial Planning director Carl Melvin says: “The greater good is to get more people saving for retirement and if consultancy charging helps then it is worth it. The Government needs to think less about price and more about value.”
But Corporate Benefits Consulting director Allan Maxwell says: “It would be a huge step backwards to reverse a ban on consultancy charging now.
“It is not fair on members with small pots as these charges can take huge amounts out of the pots.”