Since the Budget statement on October 29, we have seen considerable speculation suggesting the extra £5m allocated to the pensions dashboard project from HM Treasury is simply a drop in the ocean.
On the contrary, I think this is the strongest statement of intent we have seen to date that government is now fully committed to the delivery of the dashboard.
It was not that long ago that the entire dashboard initiative was in doubt. Given this, the 2018 Budget is a testament to the collective will of the industry and consumers who made it clear that the dashboard is required for all savers.
It also shows the Department for Work and Pensions civil servants are doing a superb job within Westminster to ensure the project remains high on the agenda.
The 2016 Budget was unambiguous in its intent: “The government will ensure the industry designs, funds and launches a pensions dashboard by 2019." That is, the industry will lead the delivery but under the government's steer, ensuring the right decisions are made, fairly, in the interests of the citizen.
To launch the service requires an industry funding model for the service and its governance, which strikes a balance between cost, achieving policy objectives and delivering on the wider vision. Since 2016, the industry has and continues to collaborate on the dashboard design. Through various industry projects, including Origo’s own ‘pension finder’ technology build, solutions are now at an advanced state of readiness.
At this crucial stage, it is encouraging that the 2018 Budget confirms that government will now consult on the detailed design.
The industry has already stepped forward with funding. As the industry’s only fintech company with a not-for-profit ethos, Origo's role is to bring the industry together to solve common operational problems that cannot be addressed in isolation to improve outcomes for consumers.
Naturally, we are proud to have joined industry stakeholders in funding three years of activity to date. And despite the complex nature of the UK pensions landscape, our investment gives us confidence that a cost-effective solution can be delivered that brings significant benefits to the wider economy, pensions industry and, importantly, the UK citizen.
To launch the service requires an industry funding model for the service and its governance, which strikes a balance between cost, achieving policy objectives and delivering on the wider vision.
At Origo, we believe that the pensions dashboard is the foundation for innovation and will lead to an ‘open pensions’ landscape focused on improving consumer outcomes. As a step on from auto-enrolment, it will be a catalyst to greater engagement.
We see the £5m of government funding as a clear statement of intent and a welcome investment. It will enable government to facilitate the industry delivery of the pensions dashboard and therefore will help savers to prepare for their retirement.
Anthony Rafferty is managing director of Origo
