The government will legislate to ensure pots of up to £100 are free from flat fee charges in defined contribution schemes, to avoid pot erosion, and said that there are "further changes we intend to make on behalf of pension scheme members".

In its response to the charge cap review, the Department for Work and Pensions said "there was support for a standardised cost reporting process to ensure transparency and consistency in the reporting of costs and charges to trustees", adding that this will ensure trustees can compare costs and ensure they deliver value for money for their members. 

Noting that the Cost Transparency Initiative process has been in place since 2019 and take-up has continued since then, it said it is not yet universal, however. "As value for money for members is a key priority, ensuring trustees have the right information available to them is essential. We will consider legislating on this matter in due course, if take-up is not sufficient," the response states.

There is "inconsistency" and "lack of clarity" around the charges members face, it added, making assessing value for money more difficult for them. "With this in mind, we will explore how better standardisation of charges and how they are expressed can be introduced,"

The government has decided not to lower the charge cap or include transaction costs.