DWP concedes to industry demands on dashboards lead time

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
DWP concedes to industry demands on dashboards lead time
Credit: Pexels/ Miguel A Padrinan

The government’s response to its latest consultation in this area, published on October 17, also clarifies certain criteria that need to be satisfied for the work and pensions secretary to issue the six-month formal notice for the live date.

The project will need to have sufficient coverage, it must work effectively, have safety and security, and be a positive user experience for the saver.

Launched on June 28 and closed on July 19, the consultation was designed to provide clarity in two areas concerning the dashboards. The first is the go-live date, known as the “dashboards available point”, and the second covers the sharing of information between the Pensions Regulator and the Money and Pensions Service.

It follows a previous consultation, launched in January, into draft dashboard regulations that was likewise met with criticism over the scale of the work it entailed for schemes, with the DWP’s insistence on both “find” and “view” functionality being available at launch deemed unfeasible by many industry commentators.

Majority of respondents push back on 90 days’ notice

As reported by Pensions Expert in July, respondents to the consultation argued that the timeline for making the initiative accessible to the public is too short, with experts continuing to warn of a capacity crunch.

From a total of 49 responses received, almost 70 per cent of these stated that “90 days was an unreasonable notice period”, pointing out to resource implications.

For example, respondents noted that “seeing information on a dashboard could prompt some scheme members to make contact to request information that goes beyond the standard data that schemes must supply to dashboards”.

This could include requests for bespoke quotes, information about death and ill-health benefits, and details of forgotten pensions, the consultation response detailed.

Other issues could entail resolving a “possible match” on an individual’s dashboard, which means members will need to contact their scheme.

Also, “some individuals with pensions that are out of scope of the regulations may contact their scheme for more information on why their information does not show on dashboards”, it stated.

Respondents “also highlighted that to effectively communicate dashboards to the public in time for their launch, 90 days was considered insufficient, whereas six months would allow for a more effective communications campaign rollout”, the government said.

In response to the industry concerns, and after recognising that its initial proposal “creates challenges for the organisations which will need to prepare” for the dashboards, the DWP amended the timeline to six months.

In the ministerial forward to the consultation response, former pensions minister Guy Opperman said: “By making this change to at least six months’ notice, the regulations provide greater certainty for the pensions industry to make final preparations for the public launch of pensions dashboards services.

“The government also remains committed to working transparently with industry about when the formal notice of the dashboards available point will be issued.”

While noting that the laying of these regulations on October 17 “marks another important milestone in the government’s progress towards making pensions dashboards a reality”, Opperman argued that “the work does not stop here, and organisations within industry should now be actively preparing to meet their forthcoming duties”.

Industry welcomes change

Industry experts have welcomed the government’s extension of the dashboards lead time.

Former pensions minister and LCP partner Sir Steve Webb noted this decision “is very sensible”.

“The previous proposal of just three months’ notice would have given schemes very little time to put in place the capacity they will need if there is an early surge in engagement with dashboards,” he said.

“Even six months will be challenging, but it is a welcome sign that the department has listened to the practical issues being raised by the industry.”

Shula PR and Policy managing director Darren Philp argued that the “consultation response is a positive step forward”.

He noted that the extension “will allow schemes and providers more time to gear up and be ready, particularly from a customer service point of view”.

“The commitment to work transparently with industry and stakeholders is also welcome. Before giving notice of the dashboards available point, it is important that the system is geared up and ready,” he said.

Broadstone technical director David Brooks said: "We would hope that the Pension Dashboard Programme will also be able to give clear guidance as we draw closer, so even the six month warning bell is sounded when we have an appreciation of the timecales.

"However, we do hope the countdown isn't delayed by any politicking, as the dashboard project is an important one that needs to come to fruition as soon as possible."

Maria Espadinha is editor at FTAdviser's sister publication Pensions Expert