The Work and Pensions Committee (WPC) has revealed that it was unable to agree a report in conclusion to its Norton pension schemes and the Fraud Compensation Fund inquiry before the prorogation of parliament on 24 May.

In a letter to Secretary of State for Work and Pensions, Mel Stride, WPC chair, Stephen Timms, confirmed that, as a result of the general election having been called, the committee was unable to agree the report, explaining that while the WPC had concluded taking evidence on this inquiry, it had not yet finalised its findings.

“However, we want to place on record our thanks to all those who contributed to our inquiry, particularly those who were affected by the Norton pension scam and took the time to share their experiences with us in written evidence and in a roundtable we held,” Timms stated.

In addition to this, Timms highlighted a number of “important policy questions” raised during the inquiry that will be relevant in the next parliament.

This included queries as to whether The Pensions Regulator’s (TPR’s) remit should be extended to cover pension scheme administrators, and whether TPR should have rule-making powers.

Timms also raised questions around the funding of The Pensions Ombudsman and whether some of its funding should be demand-led, and what changes could be made to the Fraud Compensation Fund and when payments can be made from it.

The WPC initially launched the inquiry into the collapse of the Norton pension schemes in July 2023, with the aim of ensuring members of collapsed pension schemes are better protected and supported in the future.

Commenting on Timms' summary, Arc Pensions Law partner, Ben Fairhead, said: “This is a neat, measured summary of the evidence from the enquiry.

"There were clearly weaknesses in the legislative and regulatory landscape that allowed the Norton schemes – and multiple other occupational pension schemes – to be mis-used for scams and pension liberation.

"However, many of those have since been fixed, and we really shouldn’t see schemes like these being set up and used to facilitate fraud in the same way as we did throughout the first half of the last decade. There are not the same easy pickings for scammers as there were ten years ago.

"Still, there are imperfections that must be addressed to ensure that compensation comes through for members more quickly.

"Additionally, and although it is not mentioned in the letter, we must not lose sight of the unfair and inconsistent way in which members of these schemes have been taxed – hopefully that is something the next government will be prepared to tackle.”

This is not the only area impacted by the snap election though, as industry experts have also raised concerns over potential delays to The Pensions Regulator's (TPR) Defined Benefit (DB) Funding Code, with the regulator unable to confirm the expected impact of the summer election at this time.

---