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27 May 2008 – Cash to help workers understand pensions

Funding for a series of pensions education projects will be extended until March 2009, Pensions Minister Mike O'Brien announced today.

Twenty-six projects across the UK will share the £1.47m Pension Education Fund.

The schemes, offered by a wide-range of organisations, were set up in January 2006 to develop innovative ways of talking to people in the workplace about pensions and retirement planning.

Mike O'Brien said:

"The Pension Education Fund is about trying to reach people who perhaps have never thought about pensions or what they might do when they retire.

“The scheme is a useful way to give people the information they need to make decisions about their futures. The workplace is an ideal place to do this; often someone's first contact with pensions is through their employer's scheme and research shows that workers trust their employers to provide accurate information about their pensions.”

He added:

"There is an appetite out there for simple information about pensions and finance in general. Whether it be tackling debt, saving towards a mortgage deposit, or planning for retirement, people have to make important financial decisions throughout their lives.

“The Government is currently working with the FSA to set up a Money Guidance Pathfinder project following recommendations by an independent review. This will help people find their way through the money maze by providing simple generic advice.”

The funding will allow schemes to continue to offer information and educate people about the importance of saving for a pension.

Schemes take a number of different approaches including presentations, workshops and one-on-one retirement planning.

Since 2006 the projects have reached an estimated 100,000 people.

Notes to editors

  1. The Pension Education Fund started in January 2006 with an initial budget of £5m.
  2. The Pensions Education Fund is an initiative which aims to increase financial awareness among working people - both employees and the self employed - to help them make better plans for their retirement.
  3. The fund is aimed at not-for-profit organisations, who use the money to develop innovative ways to engage with working people about pensions and retirement planning - giving them the information they need to help them to make their own decisions about retirement.
  4. There are 26 schemes involved based across the country and each has received a different contract value. A breakdown can be found at the end of this release.
  5. Otto Thoresen carried out a Generic Financial Advice Review which reported on 5 March 2008. The Treasury and FSA are working together to take forward his recommendations.

 

Media enquiries: Ben Lloyd 020 3267 5136, Lynn Eccles 020 3267 5141
Press office: 020 3267 5144
Out of hours: 07659 108 883
Textphone: 020 3267 5145
Website: www.dwp.gov.uk

Organisation Area covered by scheme Contract Value
Age Concern Birmingham Birmingham £71,833
Age Concern Camden Camden £57,228
Age Concern Ealing Ealing £71,000
Age Concern England National £63,793
British Chambers of Commerce East Lancashire
Suffolk
Rotherham / Barnsley
Hereford / Worcestershire
Portsmouth / South East
Hampshire
Essex
Nottingham / Derbyshire / Leicestershire
Coventry and Warwickshire
Hertfordshire
Edinburgh
Bradford
Kent
£64,573
Campaign for Learning London and the South East, the West Midlands and the North West £60,000
Community The Union for Life National £37,200
Council for Voluntary Service Northampton £78,959
GFTU National £60,000
Golden Gates Housing Warrington £27,498
Humber and Wolds Rural Community Council Yorkshire and Humber £53,000
Life Academy England £24,500
NAPF National £80,100
NIACE South Yorkshire £52,000
North Liverpool Citizens Advice Bureaux Liverpool £71,610
Pakistan Pendle Welfare Association Nelson and Brierfield, Lancashire £35,000
PRIME England and Wales £44,000
QED-UK Yorkshire and Humber £65,000
Royal Bath and West of England Society South West £31,500
Royal National Institute of the Blind National £34,240
SAFE- Toynbee Hall London £71,852
Sahara Communities Abroad London £70,081
Scottish Transport Credit Union Scotland and parts of England £56,000
Trades Union Congress National £54,000
USDAW National £72,000
WEETU (Women's Employment, Education and Training Unit) Norfolk £39,000