A Cabinet Minister has thrown down the gauntlet to pension providers, telling them that they face being added to a list of shame if they fail to allow customers access to the pension freedoms.
Ian Duncan Smith, the secretary of state for work and pensions, made the threat in an article for the Telegraph at the weekend.

He revealed that talks are set to get underway shortly with regulators to ensure consumers get what they were promised under the new rules.

He expressed concerns that “some firms still appear to be dragging their feet”.

His comments come hot on the heels of criticism from the new pensions minister Dr Ros Altmann, following reports that Friends Life had written to 1,300 customers who had requested partial pension withdrawals to tell them that the promised roll-out of a flexi-access drawdown option was no longer going to be take place.

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Mr Duncan Smith said: “We will not hesitate to take action to ensure that consumers get a good deal, and if we have to we are prepared to name and shame those companies who are putting barriers in the way of people getting access to their money. All of our reforms have been designed to help people make the right choices that work for them as they move towards retirement.

“Over the coming weeks Dr Altmann and the Economic Secretary, Harriett Baldwin, will be talking to the relevant regulators and the industry to see how we can best ensure that people have the flexibility they deserve.”

He said: “I have a message for those firms: it is your responsibility to sort this out, and look after your customers. After all, you are holding their money – not your own. I know that some companies have seen practical difficulties, with old IT systems meaning that staff have to process requests clerically.

“That is why allowing firms some flexibility over how they bring in the changes was necessary.

“But I now expect them to be playing a full role in enabling people to enjoy the new freedoms.”

Dr Altmann said in a statement last week: "I find it disappointing that even the larger pension companies are not allowing their customers to take advantage of the new freedoms that the Government has introduced for them.

"The industry has had over a year to prepare for the changes – and it is encouraging that some firms have risen to the challenge. But others seem to be failing to move with the times and are still acting as if nothing has changed."

In an article for the Mail Online, she and Harriett Baldwin, economic secretary to the Treasury, said: “There is no excuse for firms to claim that their rules mean you can’t access your money.”