Gregg McClymont MP, Labour’s Shadow Pension Minister, responding to the major pension provider Legal & General’s call for a much lower pension charge cap, said:

“The Government has recently u-turned, accepted the Labour case for intervening in the pensions market, and is now consulting on a pensions cap.

“With the UK facing a cost of living crisis, Legal & General’s call from inside the market for the Government to be much more ambitious on behalf of pension savers is welcome.

“With up to 11 million people being enrolled in a private pension for the first time the Government must get this right.

“Getting it right means the Government not setting the charge cap too high or omitting from the charge cap any of the costs and charges which reduce savers pension pots over time.

“When one of the biggest players in the pensions market tells the Government that its proposed cap will cost savers £4 billion alarm bells should start ringing in Downing Street.”