The government has confirmed that it will be moving forward with its plans to introduce the multiple default consolidator model for defined contribution (DC) schemes.

The Department for Work and Pensions (DWP) previously a consulted on plans for a default consolidator, and has since confirmed that it would be looking to leverage parts of the dashboards’ infrastructure in the proposed multiple default consolidator model.

The government response, published as part of the Autumn Statement, revealed that the government would be pushing forward with its plans to introduce the multiple default consolidator model for DC schemes, to enable a small number of authorised schemes to act as a consolidator for eligible pension pots under £1,000.

Industry experts previously raised concerns over the government’s plans to address small pots concerns, with a number of organisations encouraging the government to give further consideration to a 'pot follows member' solution.

Commenting in the foreword, Pensions Minister, Paul Maynard, acknowledged that not all in the industry have agreed with the DWP’s preferred option for a default consolidator, arguing however, that “in the long term, we expect commercial interests to be aligned with this ambition”.

“Through the industry delivery group, we will work together, continuing to put members interests first,” he continued.

“The small pots solution is just a starting point. I want to understand how we can go further to set out a long-term vision for workplace pension saving. Savers will still be left with multiple pots to manage.

"This, makes it harder to maximise their savings, understand what they have, and manage their retirement funds. Australia have successfully implemented a ‘stapling’ model, based on the idea of a pot for life. I want to understand what the benefits and considerations of this approach are."

Indeed, the response was also published alongside a broader call for evidence on the long-term future of the pension system, and the potential for a pot for life model.

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