The DWP was very guarded in its response to Mr Timms' proposed amendment to the Pension Schemes Bill going through Parliament, but did not dismiss the proposal out of hand.
A DWP spokesperson told Financial Planning Today: "We are carefully considering all amendments to the Pension Schemes Bill and the government will detail its response in Committee."
The proposer of the amendment, Stephen Timms MP, is chair of the Work and Pensions Committee.
His amendment is due to be heard at the Bill committee stage today.
The move, by an influential former Pensions Minister, would introduce auto-enrolment of pensions guidance just a few days after the government rejected auto-enrolled advice in favour of a ‘stronger nudge’ towards pension guidance.
The amendment calls for increased use of pension guidance.
If accepted as part of the Bill, Mr Timms' amendment would compel the government to write to pension scheme members five years before they are eligible to take benefits to give them a date and time for a pensions guidance appointment - unless they chose to actively opt out of the guidance.
Last week the government announced its decision to opt for a ‘stronger nudge’ rather than auto-enrolment. Following a trial which showed a nudge had some benefit in encouraging take up, the DWP will ask DC schemes to encourage members to get pension guidance from Pension Wise.
However it appears unlikely that DC pension savers will be automatically ‘opted-in’ to guidance, a decision likely to mean most pension savers will still not receive guidance.