Pensions Minister Laura Trott said today that the Pensions Dashboards will be delayed and will miss the 31 August deadline when the first connections were due.
Ms Trott says there will need to be a “reset” to the Pensions Dashboard Programme timetable.
There are signs that timetable is in trouble, with the technical standards proving more complex and time-consuming to deliver.
There is no clear indication now of when the Pensions Dashboards will see the first testing with legislation needed to implement a new timetable.
The Pensions Dashboard Programme is under the supervision of the Money and Pensions Service.
Ms Trott said in a statement today: “The project is a significant undertaking, requiring the development of new technology that will permit individuals to find their pensions by searching thousands of pension schemes which collectively hold millions of pensions records. The first connection deadline is currently 31 August 2023.
“However, additional time is required to deliver the complex technical solution to enable the connection of pension providers and schemes, in accordance with the connection deadlines set out in the Pensions Dashboards Regulations 2022 and the Financial Conduct Authority’s corresponding pensions dashboard rules for pension providers.
“More time is needed to deliver this complex build, and for the pensions industry to help facilitate the successful connection of a wide range of different IT systems to the dashboards digital architecture. Given these delays, I have initiated a reset of the Pensions Dashboards Programme in which DWP will play a full role. The new Chair of the Programme Board will develop a new plan for delivery.”
Pensions Dashboards are a major plank of the government’s pension strategy and will enable pension savers to see all their pensions in one online location to make retirement planning monitoring and planning easier.
Despite the delay Ms Trott said that the framework set out in the regulations for Pensions Dashboards remains “fit for purpose.”
She said the DWP will legislate “at the earliest opportunity” to amend the timing of the obligations to provide clarity to schemes.
She added: “We will ensure that the pensions industry has adequate time and the necessary technical information to prepare for any revised connection deadlines. I will provide a further update to the House before summer recess.”
She said the government remained committed to the dashboards, adding: “It is essential that scheme preparation for Pensions Dashboards continues, and we will press ahead to deliver this technology.”
The Pensions Dashboards Programme, under the supervision of the Money and Pensions Service, is responsible for delivering the digital architecture which underpins the dashboards.
The Pensions Dashboard Programme also released a statement today saying that it will be “unable to meet the connection deadlines set out in legislation, and the timeline will need to be revised.” The PDP is working with DWP to establish “a new and achievable plan” for delivery.
Further information on the revised timeline will be made available following agreement on PDP’s delivery plan, the PDP said.
Chris Curry, PDP’s principal, said: “Delivering the central digital architecture for Pensions Dashboards is a complex undertaking. DWP and the Money and Pensions Service remain committed to dashboards. Significant progress has already been made. However, we need to do more work to ensure the connection journey is stable and secure for industry, and that it’s achievable ahead of mandatory connection.
“We will continue to work closely with industry to deliver dashboards that will transform retirement planning and create new opportunities for engagement with savers.”
Caroline Siarkiewicz, the Money and Pensions Service’s chief executive, said: “Pensions dashboards will be a vital tool for pensions savers, helping them plan effectively for and in later life, so it’s essential that we take the time to get them right.
“Today’s announcement affords us the opportunity to replan the work of PDP, collaborating closely with industry partners on the way forward. MaPS, alongside Government, remains committed to this programme, and will continue to work with industry to ensure that pensions dashboards are delivered.”
Dr Yvonne Braun, director of Policy, Long Term Savings, Health and Protection, Association of British Insurers (ABI), said: “It’s right that the regulatory deadlines for providers are pushed back in line with this delay. There needs to be enough time for testing and onboarding, with the industry closely involved and learning shared widely, to ensure that dashboards work for consumers and that they can fulfil their potential. It is also important that work to help firms prepare to connect should continue during this reset.”
