The Department for Work and Pensions has launched a consultation which sets out targeted measures to address the risk of fraud within Small Self-Administered Schemes as part of a wider government programme to tackle pension fraud.
Pensions minister Torsten Bell acknowledged that while SSASs make up only a small minority of the pensions market, they may be more vulnerable to fraud.
Data from Report Fraud shows the average financial loss in 2024 to 2025 was £18,400, and where an investment was identified as the primary vehicle for pension fraud, as is commonly observed in case studies relating to Small Self-Administered Schemes, the average loss per victim increases to £38,400.
“Work is already progressing across government, regulators, law-enforcement partners and industry to understand emerging threats and limit avenues for misuse,” says Bell.
The programme’s broader aim is to strengthen protections for pension savers and to reinforce the mechanisms through which risks are monitored, fraudulent activity is detected, and to ensure those responsible are identified and prosecuted.
The consultation also proposes targeted changes to transfer conditions to address operational issues raised by trustees, administrators and savers themselves.
The proposed amendments also seek to address emerging SSAS concerns by including a targeted change to introduce a new red flag where an asset transfer is proposed and the evidence provided does not demonstrate an employment link with the receiving occupational pension scheme.
David Brooks, head of policy at pensions consultancy Broadstone, says: “The government is right to maintain a laser focus on pension scams and developing a comprehensive and robust scam protection framework will be essential to ensuring savers are able to avoid the significant financial and emotional damage that these criminals can cause.”
The consultation period begins on 9 June and will run until 21 July, and is open to responses from a wide range of stakeholders within the pensions industry.
