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Speaking in the House of Commons, the Chancellor said the Financial Conduct Authority (FCA) will now be responsible for capping early exit fees.
He said: “The pension freedoms we’ve introduced have been widely welcomed, but we know that nearly 700,000 people who are eligible face some sort of early exit charge.
“The government isn’t prepared to stand by and see people either ripped off or blocked from accessing their own money by excessive charges.
“We’re determined that people who’ve done the right thing and saved responsibly are able to access their pensions fairly.”
Data from the FCA reveals that nearly 700,000 people in contract-based schemes could face a charge for accessing their pensions early.
The new legislation will put the FCA in charge of setting the level of the cap.
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