MPs have called for the Government to act rapidly to avoid “the next major pensions mis-selling scandal” as they criticised the failure to get the pension freedoms working sufficiently and a lack of information about Pension Wise.

The House of Commons Work and Pensions Committee warned that a “lack of regulatory clarity is endangering pension savers”.

It has published a report this morning on the reforms in which it calls for officials to slash jargon and complex pricing structures for savers.

The report stated: “The new “freedom to choose” reforms to pensions introduced in April of this year are insufficient: people must have the freedom to make a well-informed choice.

“To not provide the basis for a well-informed choice could lead to the next major pensions mis-selling scandal. The Committee therefore calls on the Government to act swiftly in response to its report.

“The Committee says pension freedom is not yet operating entirely as it should. Evidence to the Committee shows the advice and product markets are responding to fill gaps, but lack of regulatory clarity is endangering pension savers.

“Improvements in guidance and advice are crucial to the success of the policy and the Committee will monitor progress closely.”

Frank Field MP, chair of the committee, said: “The Government must urgently provide some data about how this is all working, and close the gaps that are already apparent. We have seen all too clearly, too many times, what happens when financial information is not properly provided and regulated. We literally cannot afford another financial mis-selling scandal.”

“Reluctance to provide information about how a reform or service is working is rarely a good sign. It is very difficult for the Government to support its claims that all is well, or for us to make any assessment of progress, when no data is forthcoming despite repeated requests.

“These reforms have been in operation for six months now: it is evident that that has been long enough for the scammers to get going, working on defrauding people out of their life savings - it should be long enough for Government to have published some data about how the reforms and the attendant guidance and advice are working.

The Committee called on the Government to:

1. Provide more anti-scam publicity and introduce stricter reporting requirements for pension providers;

2. Reduce the use of jargon and complex pricing structures for savers trying to withdraw funds;

3. Clarify the distinction between guidance and advice;

4. Clarify the definitions of safeguarded benefits.