asked the Chancellor of the Exchequer what is the average time elapsing between the pension fund applying to the Inland Revenue for tax-free status and (a) interim approval being given by the Revenue and (b) final approval being given by the Revenue.

It takes on average three months between an application for approval of a new occupational pension scheme and the authorisation of provisional relief for employees. Final approval depends on full documentation being produced by the applicant. This often takes a long time. Whilst final approval is possible in some cases within six months of application, the average time between application and final approval is two years.