It’s rather fun to get the political inside track on something that really matters. On Tuesday, Guy Opperman gave us the inside track on why the Pensions Dashboard is being delivered 7 years after originally promised. why LTAFs are already white elephants and why Emma Reynolds is in danger of getting bogged down in parliamentary business when she should be leading reform
This is why Guy Opperman’s pension playpen session was so well attended. I’m pleased to see that Guy is securing other important engagements, he has a lot to say and he says it extremely well. See for yourself
Padraig Floyd picks up the story, reporting for Pensions Expert where this article was first published.
I would add that a considerable part of our conversation concerned the need for change in the way funded British pension funds, from personal pensions to our large DB plans invest.
Data remains ‘fundamental problem’ for dashboards, says Opperman
| September 4, 2024
Opperman, who served as minister for pensions and financial inclusion between 2017 and 2022, voiced “sadness” over the delays that have beset the delivery of the dashboards programme.
“It is a matter of supreme disappointment to me that we are in 2024 and we still have not got the project that I was certain would be over the line by this stage,” Opperman said during an interview in a recent Pension Playpen online event.
He acknowledged that mistakes had been made and budgets and opportunities squandered, but added that the project’s complexity had hampered progress.
“You only succeed in government if you own that particular project in a way that you take full responsibility for it, and that is difficult in government, particularly when you’ve got multiple different organisations,” he said.
Even if the programme had achieved its initial deadline, the quality of data remains a “fundamental problem”, the former MP stated.
Data quality limited
“Data in our pension system is ‘interesting’ to say the least,” said Opperman, “and it is quite clear that it is exceptionally difficult to get a dashboard over the line when the quality of the data – and the money spent to upgrade the data – is limited.”
That individual schemes themselves were not dashboard ready was a “legitimate criticism”, he continued. However, he also acknowledged that “government in its various shapes or forms, whether at arms’ length or directly administered – and ultimately, [as minister] I take the blame for everything – didn’t produce and get over the line by 2024 a dashboard project”.
Ownership of projects plays a major role in success, Opperman said. He highlighted the long-term asset fund (LTAF) as an example of a good idea not working “because there are multiple different agencies involved” and no one department owns the project.
While the regulation allowing LTAFs was passed last year, so far the take-up has been slow with only a handful launched.
Auto-enrolment expansion
Even where a minister has ownership and buy in from other departments – particularly the Treasury – limited time in each parliament prevents certain projects being started, Opperman explained.
The extension of auto enrolment was planned, he said, but was placed on the back burner as there wasn’t capacity “to just steamroller that through”.
Opperman – who lost his seat in July’s general election – said that any new pensions bill was likely to contain much of what he had been working on three or four years ago and hoped the government would show greater ambition than previous administrations with large majorities.
He wished success to Emma Reynolds, the new pensions minister with reporting lines to both the Department for Work and Pensions and the Treasury. However, he warned that Reynolds may find herself frustrated, despite having greater powers through her dual department role.
“She’s going to spend a lot of her time defending and dealing with winter fuel payments, WASPI, the day-to-day debates in the House of Commons,” added Opperman.
“That will make it very difficult for her to do the other stuff that she wants, when clearly the prime minister and chancellor are more interested in how they can use private pensions in a different way.”
Further reading
Opperman warns providers on dashboard preparations (23 January 2020)
Joined-up thinking: Emma Reynolds to work across DWP and Treasury (10 July 2024)
