16 September 2026
As part of its plans for addressing the growing number of small, deferred DC pots, the DWP published its latest consultation yesterday: Small Pots: a pathway for consolidation.
Sacker & Partners LLP (Sackers), the UK’s leading specialist law firm for pensions and retirement savings, responded.
Ferdy Lovett, partner, commented: “Having previously dealt with the criteria for pot eligibility, today’s consultation is designed to tackle important questions around how consolidator schemes will be authorised, the standards and governance arrangements they will need to meet, and the digital infrastructure and ecosystem needed to support the new regime.
“We very much welcome this next stage in helping to solve the growing small pots conundrum. There are clearly key practical steps which will need to be ironed out, including providing transferring (or “ceding”) schemes with the necessary tools to exchange information with consolidator schemes, understand whether a match has been identified, and determine which consolidator should receive a particular pot.”
Lovett continued: “With the Government keen to tap into existing and developing industry capability, this represents a crucial phase in development, and it will be important that the infrastructure’s design strikes the right balance in fulfilling the Government’s policy of delivering high-quality DC outcomes for members.”
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