Pensions minister Steve Webb has said the government does not want small employers to seek independent financial advice on auto-enrolment.
During an evidence session with the Work and Pensions Committee on auto-enrolment, Webb said he would rather see small employers use "generic guidance" from the Pensions Regulator (TPR).
"There will be a distinction between large and small employers. Large firms will be able to pay employee benefit consultants," Webb said.
"We do not want small firms to pay for advice if it is not necessary.
"We do not want the majority of firms to have to seek expensive advice, and we do not want to see them agonising over two similar products."
On individual pension advice, Webb added that IFAs would refuse to provide advice for the majority of individuals going into auto-enrolment as the fees on such small contributions "would not be worth having".
He said information on the government website Directgov will signpost individuals to the Money Advice Service, and will include a prompt to seek independent financial advice "as a footnote... because they have to".
In November an internal DWP email, leaked to IFAonline, revealed the DWP would not encourage any government scheme to improve shopping around for retirement "which drives people to seek paid-for advice."
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