DWP outlines pot follows member plans with two-step proposal

clock

The Department for Work and Pensions (DWP) has published proposals to automatically transfer small pots when savers move jobs, with exemptions for funds outside the 0.75% charge cap.

The draft paper follows confirmation from pensions minister Steve Webb last month that auto-transfers would begin on a voluntary basis. The Automatic transfers: a framework for consolidating pension saving paper revealed the policy would take a two-phase approach. The policy would be operated through opt-ins by scheme members under phase one, but this would be replaced by an opt-out regime in the second phase of the project. Under the plans, schemes would have to set up their own register of dormant pots either in-house or with a third-party which would form part of a wider network...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Pensions

Why waiving the right to tax-free cash is not a straightforward decision

Why waiving the right to tax-free cash is not a straightforward decision

Depends on a number of factors

Lisa Webster
clock 14 May 2026 • 3 min read
King's Speech has limited impact on pensions

King's Speech has limited impact on pensions

Pensions UK says there may be pension implications from other aspects of the legislative programme

Jonathan Stapleton
clock 13 May 2026 • 1 min read
Pensions and divorce: Where advisers can add the most value

Pensions and divorce: Where advisers can add the most value

'A pension is not simply another line on a balance sheet'

Tim Latham
clock 12 May 2026 • 4 min read