Widows chief: Pensions industry close to breaking point after Budget

Toby Strauss, the chief executive of Scottish Widows, has said the pensions industry is in danger of "breaching its capacity to cope" following the far-reaching changes announced at Budget 2014, unless it is afforded some breathing space by policymakers.

Strauss admitted service levels at the provider, which has two million pension customers, had suffered as its processes struggle with the pace of change, which he called "unprecedented". As well as March's Budget, Scottish Widows and other providers have also in recent years dealt with the implementation of the Retail Distribution Review and the roll-out of auto-enrolment, Strauss outlined in a letter to Telegraph Money. "In the absence of any breathing space, we have concerns that the industry is in danger of reaching - and in fact breaching - its capacity to cope," Strauss, who join...