Buzz: Govt criticised for accelerating abolition of member refunds

clock • 1 min read

The majority of contributors believe the government was wrong to bring forward the end of short service refunds. The move means refunds will be banned before measures to consolidate small pots are expected to be in place.

"Both of them should have been done together," said one commentator. "This is just another example of the inability of any government to do joined-up writing!"

p17-chart-2

 

Leaping at the chance to bash a bureaucrat, another contributor said: "As always, it is civil servants not understanding how things work. They are not pensions people and always get it wrong."

Some contributors went beyond criticising the timeframe for banning refunds, and questioned the whole concept.

"It seems like a knee-jerk reaction to bolster pot consolidation," was one respondent's verdict. "It assumes that all short service members will remain in employment in the UK. This is not the case in, for example, higher education where many short service members are not British nationals and will be returning to their native countries, so there is no onward pot to consolidate with."

But the measure was supported by almost three out of ten contributors.

"The government should have acted the first time it suggested that this would happen," said one respondent. "Short service refunds undermine the whole concept of auto-enrolment."

Another supporter said: "It's a move that actually fits in with their policy of encouraging saving for retirement, as opposed to most of their other bright ideas which actually discourage saving!"

More on Industry

Professional Pensions: Stories of the week

Professional Pensions: Stories of the week

HMRC guidance on VAT recovery on pension investment costs, DB surplus flexibility consultation, GMP conversion tax changes

Professional Pensions
clock 12 June 2026 • 1 min read
AE reform could unintentionally widen gender pensions gap, PEG says

AE reform could unintentionally widen gender pensions gap, PEG says

PEG’s report calls for the introduction of a financial safety net before any AE changes are made

Martin Richmond
clock 12 June 2026 • 5 min read
UK Pensions Awards 2026 — The Winners

UK Pensions Awards 2026 — The Winners

Recognising excellence among schemes, consultants, asset managers and providers

Jonathan Stapleton
clock 12 June 2026 • 3 min read
Trustpilot