The Guardian reports that ‘restricted’ documents sent to senior MPs in January of this year reveal the Iain Duncan Smith is considering outsourcing state pension administration to private companies.
As part of the government’s ‘austerity’ drive, the Department for Work and Pensions is looking to save £2 billion from its operational budget by 2016.
The document says that the department needs to consider strategic shifts in the way pensions and other benefits for over 65’s are managed. It says, “This includes a review of the pension service’s current delivery model and alternative delivery models.”
According to the document, the department has already gone as far as it can in making the delivery of pensions efficient. The government has ten pension centres around the UK and employs around 7,000 to administer £80 billion in state pensions, £7.7 billion in pension credits, and £2.8 billion in other pension benefits.
Pensions expert, Ros…
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