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Consultation Launched on Consolidating Small Pension Pots

The Department for Work and Pensions (DWP) has opened a consultation on a solution to address the issue of 'small pots' in the defined contribution (DC) pension market.

  • The DWP has launched a consultation titled 'Small Pots: a pathway for consolidation'.
  • The consultation aims to implement the Multiple Default Consolidator solution.
  • This initiative seeks to address the 'small pots problem' within the DC market.

The Department for Work and Pensions (DWP) has initiated a consultation focused on the consolidation of small pension pots. Titled 'Small Pots: a pathway for consolidation', the consultation was announced today, 15 September 2026.

The DWP intends to implement the Multiple Default Consolidator solution. This approach is designed to tackle the ongoing issue of 'small pots' within the defined contribution (DC) pension market.

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