Government Response to Consultation on Personal Accounts White Paper

On 14 June 2007, the Government published its response to the consultation exercise on its White Paper, “Personal Accounts – A New Way to Save”. In this response, the Government set out further details on the way that it will be implementing its new personal accounts scheme from 2012.

On 14 June 2007, the Government published its response to the consultation exercise on its White Paper, “Personal Accounts – A New Way to Save”. This response can be accessed at http://www.dwp.gov.uk/pensionsreform .

In this response, the Government set out further details on the way that it will be implementing its new personal accounts scheme for 2012. In particular, it stated that:-

(a) There will be an annual “cap” of £3,600 on contributions into personal accounts, indexed in line with average earnings, with the Government consulting about the opportunity for employees to be able to make occasional additional lump sum contributions,

(b) Eligible employees will be automatically enrolled into personal accounts when they start employment but the Government will be consulting on having a short waiting period (3 to 6 months) for “good” occupational pension schemes,

and

(c) Personal accounts will be set up as a trust-based scheme with both an employers’ and a members’ panel that will be consulted on key issues.

EEF has issued a media release on this Government response:

> Personal accounts are essential building block in package of pensions reform say manufacturers.