Mark Hoban, Financial Secretary to the Treasury, today published the Government’s response to the call for evidence on early access to pension savings.

The Government is committed to improving flexibility over savings, to encourage individuals to either start saving or save more. Following consideration of the responses received, the Government has concluded that early access to pension savings should not be considered at the present time on the basis that:

• there is limited evidence that allowing early access would have a positive effect on overall pension contribution levels or provide significant help to individuals facing financial hardship; and •the extensive private pension reforms already planned, most notably the introduction of automatic enrolment from 2012, should be implemented before the Government considers further reform. However, responses to the call for evidence showed support for the feeder fund model and the Government will engage with industry to further develop innovative workplace savings models that will encourage saving for both medium term needs and for additional retirement income. In addition, the Government will explore reform to trivial commutation rules to improve flexibility for those with very small levels of savings in personal pension schemes. This will benefit both individuals and pension providers.

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