Government to set up small pensions pot consolidator

Pension Schemes Bill measure will reduce admin costs and boost pots

Jonathan Stapleton
clock • 3 min read

The government is set to create a small pensions pot consolidator in an initiative to tackle the growing problem of forgotten pots that people accumulate as they move between employers.

The government said there are now 13 million of these small pots holding £1,000 or less, with the number increasing by around 1 million a year. It said the "unnecessary" admin cost to the industry of overseeing all these pots was about £225m a year. The small pot consolidator – announced by pensions minister Torsten Bell today (24 April) – will be introduced as part of the Pension Schemes Bill, set to be introduced in Parliament later this Spring. The government said the consolidator would bring together each individual's small pot into one pension scheme that is certified as deliv...

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