MP's victory on pensions cap

HUNDREDS of workers in Warrington are set to benefit after the Government signalled an intention to cap the annual amount that pension providers can charge for workers in auto-enrolment schemes.
The announcement is a personal victory for Warrington South MP David Mowat, who has raised the issue in Parliament on several occasions and called for a cap in a pamphlet entitled “40 Ideas from the 40”.
Under Government legislation, companies will now be required to offer their employees the opportunity to save for retirement, meaning many workers will be entitled to a pension for the first time in their lives.
However, Mr Mowat warned that automatically enrolling workers into existing schemes with high charges could rob many employees of their chance of a decent retirement.
He said: “This announcement is excellent news for hardworking families and savers in Warrington. It is something I have personally lobbied for and I am pleased to see the Government adopting it.
“As a nation, we are not saving enough for our retirement. Auto-enrolment will help, but without a cap on charges, many people could see their hard-earned savings being siphoned off by millionaire fund managers.
“The pension industry is a market that is failing savers. The announcement won’t solve that problem entirely, but it does at least offer ordinary people basic protection.”