Key Points from the Pensions Select Committee Inquiry
Victims Feel Persecuted by HMRC
- Many victims of pension scams receive unauthorised payment tax charges from HMRC despite never benefiting from the funds.
- Angela Brooks (Pension Life) said HMRC treats victims as “tax fraudsters,” aggressively pursuing tax bills on money that was stolen.
- Victims face life-changing consequences — financial ruin, mental health crises, and feeling re-victimised by the system.
Rick Muir (Police Foundation)
- Rick Muir highlighted a serious under-policing of fraud, especially complex investment fraud like pension scams.
- He emphasised the lack of coordination between agencies (police, Action Fraud, HMRC) and the absence of specialist investigative capacity.
- Called for structural reform to make fraud enforcement more effective, including training, resource allocation, and a joined-up national strategy.
Age UK’s Concerns
- Christopher Brooks (Age UK) said older people are disproportionately targeted, with some losing their entire retirement savings.
- He stressed that pension freedoms introduced in 2015 increased vulnerability to scams.
- Urged stronger regulatory protections, including:
- Mandatory guidance through Pension Wise
- Powers for schemes to block suspicious transfers
- A more effective ban on cold calling
Other Notable Points
- Anthony Arter (Pensions Ombudsman) described how victims often go through years of complaints and legal processes with limited resolution.
- Project Bloom was mentioned as a multi-agency initiative, but the session highlighted its limited success and lack of authority.
- Industry bodies like the Pensions Management Institute supported a “red flag” system for suspect transfers and improved consumer education.