24 April 2025
On Thursday 24 April, the Department for Work and Pensions (DWP) published a press release to confirm reforms will introduce the consolidation of small pensions pots, which will result in millions of savers having a boost of £1,000 to their pension funds.
The Pensions Minister, Torsten Bell said:
“It’s great news that more people are saving for their retirement… There are now more small pension pots in the UK than pensioners – raising costs and hassle for workers trying to track their savings...We will automatically bring together people’s small pots into one high performing pension, reducing costs as well as hassle for savers. In time this could boost the pension of an average earner by around £1,000 as part of our Plan for Change to put more money in people’s pockets.”
The announcement was made following the work of the Small Pots Delivery Group, which the CIPP’s Jill Smith, Product Development Director and Mathew Akrigg, Policy and Research Officer, were a part of.
The Small Pots Delivery Group Report provides a thorough overview of the changes, including the further legislation requirements:
“Following Royal Assent of the Pension Schemes Bill it is the intention that through consultation with industry that regulations will be drafted during 2026 with elements of the legislation expected to come into force during 2027/2028. Duties on pension schemes to transfer and consolidate eligible pots likely to come into force from 2030.”
It appears that further consultation will be undertaken to gather more thoughts on the implementation approach. The Policy Team will keep an eye out for those future consultations and will be keen to run Think Tanks alongside the DWP and our members to feed into this key policy change.
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