PBR: Pada on Personal Accounts staggered launch

The chancellor told MPs today (9 December) that the phasing-in of the roll out of Personal Accounts would contribute towards £5bn of savings for public spending programmes.

Tim Jones, chief executive of Pada, said today's announcement by the chancellor underlined the government's commitment to the scheme.

He said: "As the chancellor said in his speech the reforms are going ahead, and the employer duties will be staged in from October 2012 as planned.

"However, the government is adjusting some of the details of how the duties will be implemented and will announce details of that early next year."

However Maggie Craig, acting director general of the Association of British Insurers, said she was disappointed by any delays to the scheme.

She said: "We need to get a move on to improve pension provision and help people save for retirement.

"The government's plans involve phasing in at the speed of the slowest which saves the Exchequer money in the short-term at the expense of long term pension saving."

Mr Jones said the scheme was "progressing well" and was ready to launch in low volumes in 2011, and recruitment for a new chair was underway.

"The Personal Accounts scheme will launch in low volumes in 2011 and will be ready for the onset of employer duties from October 2012."

Mr Jones said the authority was on track to "implement and deliver" the scheme due to come into force originally set to come into full force from 2012.

The prospect of further delays to the scheme prompted Ms Craig to call for voluntary early auto-enrolment to private schemes to get people saving as early as possible.