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'Scandalous' rise in personal accounts budget revealed

The government's attempt to overhaul individual pension schemes has trebled in cost, Reuters reports.

Personal accounts, otherwise known as the new National Pensions Saving Scheme, will now cost £2 billion - way up on the scheme's original £500 million budget.

The policy is aimed at providing workers who do not contribute to a company pensions scheme with retirement savings.

Authorities had been concerned that people were not planning for the future, due in part to credit spending and loans repayments putting the squeeze on personal pensions.

It is estimated that around ten million Britons will begin contributing to the accounts under the scheme, unless they individually opt out of donating.

An anonymous source, which the news agency described as close to the situation, said that the spiralling budget was due to bureaucracy and inefficient usage of advisors from counsultancy firms including Deloitte and PricewaterhouseCoopers.

"[The government has] got dozens and dozens and dozens of expensive consultants working on nothing other than devising a plan and supporting the passage of a Bill, which is wrapped up in red tape and time-consuming government process…it's scandalous," they commented.

Personal accounts are scheduled to be introduced in 2012.

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