The Government remains “as committed as ever” to making pensions dashboards, which will enable people to see all their pots in one place, a reality, pensions minister Laura Trott has said.
The Government previously said more time is needed for the complex build of pensions dashboards to be set up.
Ms Trott said there would be a “new approach to delivery that allows us to work more collaboratively with the pensions industry”.
In a written statement on Thursday, Ms Trott said: “Rather than setting out the entire staging timeline in legislation, we will instead set this out in guidance which we will collaborate on with industry this year.
“This will give the pensions dashboards programme the flexibility it needs to ensure this complex project is completed effectively.”
She added: “In recognition that the requirement to connect to the digital architecture should remain mandatory, we will include a connection deadline in legislation of October 31 2026.
“This is not the dashboards available point – the point at which dashboards will be accessible to the public – which could be earlier than this.
“The Government remains as committed as ever to making pensions dashboards a reality and we are ambitious about their delivery.
“I am confident that this re-appraised approach will enable us to make significant progress on delivering dashboards safely and securely, enabling consumers to take advantage of their benefits to plan for retirement.”
Rocio Concha, Which? director of policy and advocacy, said: “Pensions dashboards have the potential to be a game changer by helping savers to keep track of their pots in one place.
“Seven years have passed since the Government first made a commitment to introducing a dashboard, so it’s hugely disappointing to hear that the date by which all schemes will be connected will be delayed by a further 12 months.
“With billions of pounds lost or dormant in unlocated pensions, the need for dashboards is stronger than ever. That’s why providers who are already in a position to comply should not wait to do so.
“The DWP (Department for Work and Pensions) must be ready to oversee compliance and to step in robustly should some firms fall below the required standards.”
Nigel Peaple, director of policy and advocacy at the Pensions and Lifetime Savings Association (PLSA) said the statement provided “some helpful clarity and flexibility for the pensions industry”.
He continued: “We would, however, highlight that many in the pensions industry, including the PLSA, would have preferred the new staging timeline to be set out in regulation, as was previously the case, rather than only in guidance, as is now planned.
“To make this new approach work, it will be necessary for the dashboards programme to work in a very open, transparent and collaborative way such that all parts of the Government involved in the project, and all those involved from across the industry, can work together as one.
“The PLSA remains committed to the successful delivery of pensions dashboards in the UK. We believe they will have a transformative effect on wider pensions engagement and understanding.
“As we have said since the start of the programme, this is a highly complex undertaking, early delivery is less important than successful delivery.”