DWP response on scams and guidance 'light on details'

Responding to recommendations made by the Work and Pensions Committee, the DWP said a cold-calling ban will be implemented, with government tabling a "workable" amendment to the financial guidance and claims bill.

The response also addressed the issue of guidance, as the select committee had recommended that people either receive guidance or expressly refuse it.

The DWP pointed to government amendments to the bill and outlined how it intends to improve Pension Wise take-up. Pension Wise will seek to increase the number of recently introduced digital appointments and are planning to work with providers on "several pilots" this year to test new ways for referring pension savers to the service.

Industry commentators welcomed the push to improve guidance take-up, but were critical of the pace taken so far with banning cold calls. 

Three years after the introduction of the freedoms, there is still no ban, Tom Selby, senior analyst at platform provider AJ Bell, pointed out. “The government continues to talk tough on tackling pension scams but we still have no idea when the proposed ban on cold-calling will come into place," he said.

Others warned that even once a ban is in place, it will not necessarily solve the problem.

James Walsh, policy lead engagement, EU and regulation at the Pensions and Lifetime Savings Association, welcomed the commitment to a ban, but cautioned it "is not a water-tight solution".

He said: "Some scammers will still work to find a way around legislation by – for example – calling from overseas.”

Jane Goodland, responsible business director at provider Old Mutual Wealth, said the DWP response was "light on details of their next steps".

She said that as well as a ban, an awareness campaign is needed "so that people know if they receive a cold call concerning your pension that they should speak to Pension Wise, a financial adviser or their pension provider".