The delivery of pensions dashboards that will enable people to view all their pensions online, in one place, is being stymied by a lack of digital skills and capacity.
This was a key finding in a National Audit Office (NAO) report that examined why progress on the government’s Pensions Dashboards Programme (PDP) was slower than originally planned.
The dashboards, once implemented, will help people make better retirement plans, support more informed financial decisions and enable people to connect with ‘lost’ pension pots.
The Money and Pensions Service (MaPS), an arm’s-length body of the Department for Work & Pensions (DWP), is responsible for delivering the PDP.
However, when the DWP delegated the work in 2019 it failed to get assurances that MaPS had the capacity and capability to deliver a major digital programme. MaPS had only been formed in October 2018.
Unworkable timetable
Between 2020 and mid-2022, DWP and MaPS made progress in delivering key parts of the dashboards system, the NAO report said. However, in December 2022 MaPS told DWP that the PDP delivery timetable was no longer viable.
A DWP assessment of progress in February 2023 found a lack of skilled digital resources and ineffective programme governance had contributed to delivery problems. These issues had already been flagged in earlier reviews of the programme carried out by the Infrastructure and Projects Authority.
This prompted “a programme reset” which meant the deadline for connecting all pensions dashboards was moved to 31 October 2026 – a year later than originally scheduled.
Currently, there is no date for when the estimated 16.3 million users will be able to access pensions dashboards. But the NAO said that the delays suggest this is likely to be later than previously expected.
Costs up, benefits down
The NOA also found that the estimated cost of the PDP has increased by 23 percent, from £235 million in 2020 to £289 million in 2023. But the estimated gross benefits have fallen from £437 million in 2022 to £413 million in 2023.
Gareth Davies, head of the NAO, said: “Once completed, the PDP could benefit millions of people by providing a secure, comprehensive and online point of access for information about their pensions.
“However, delivery delays due to shortfalls in digital capacity and capability have pushed back the final deadline for pension providers and schemes to connect to the PDP by a year, with no date currently set for citizens to benefit.
“Though progress has been made during the reset, DWP and MaPS must continue to work closely to ensure the final stages of the PDP are delivered smoothly and the public can begin to have access to this important service.”
Savers ‘badly let down’
Rachel Vahey, head of public policy at AJ Bell, said: “The final bill for pensions dashboards is due to come in at an eye-watering amount, almost £300 million.
“There is no doubt the government has committed resource to this project, but that figure misses out the sacrifice pension schemes will also make – both financial and in development time – to connect to the ecosystem. This doesn’t come cheap for anyone.
“With such a high price tag, it is essential the pensions dashboards are a success. Dashboards have the potential to empower pension savers, but they’ve been badly let down by a project that has, so far, over-promised and under-delivered.
“They need to work – to show all the pension schemes someone has built up. But getting that information is only half the story. People also need help in knowing what to do next. Having a simple, streamlined, and engaging customer journey is paramount to whether the pensions dashboards are a success, or whether they fail by turning off consumers through frustration.”
The PDP is currently being reset. DWP and MaPS have made progress in some areas including revising its delivery plan, reviewing the digital architecture to ensure it meets requirements and appointing a new senior responsible owner with the necessary digital technology experience to lead the rest of the programme.
