Webb to consult on 0.75% cap while McClymont calls for review of hidden charges

The government will launch its consultation on a workplace pension scheme charge cap that could be fixed at 0.75 per cent, minster Steve Webb has told Parliament today.

In the same debate, which is currently ongoing, Labour pension shadow Gregg McClymont will call for an inquiry into hidden charges in pensions and the funds in which they invest, that will include scrutiny of portfolio turnover charges, foreign exchange costs, spreads, stock lending and custody charges.

McClymont has also filed an amendment that would require everyone saving in a workplace pension to benefit from the services of an annuity broker.  

The Labour amendment states: “Any qualifying money purchase scheme must direct its savers to an independent annuity brokerage service or offer such a brokerage service itself.”

Webb said: “Tomorrow, we will launch our consultation on a cap on pension charges in workplace schemes.

“A range of options will be on the table including an outright ban on all charges above 0.75 per cent a year.”