Gregg McClymont MP, Labour's Shadow Pensions Minister, responding to today’s announcement by Steve Webb, said:
"Today’s announcement is not the best deal for pension savers. Ministers must put the saver’s interest at the heart of what they do. Steve Webb’s proposals on small pots fail this test. The Government’s statement today could misleadingly give the impression that they have widespread support for their proposals: they do not.
"Right now, a pension saver could lose up to half of their pension thanks to hidden costs and charges in some of the worst cases – the Government’s announcement today risks making a bad situation for the saver worse.
"This announcement comes on the same day that the Office for National Statistics reveals a further decline in the number of people saving into pensions. This is why Labour is calling for a new deal for private pension savers."