Pension Schemes Bill [Lords] — House of Commons, 2020-11-16
Topic: Labor
Neil Charles Gray (Scottish National Party, Centre-left): The fact remains, and the Minister has not rebuked the point I made in Committee, that the stronger nudge managed to get successful appointments to move from 3% to 11% of cases. That is not a significant improvement. A stronger nudge is just not going to be enough, which is why we argued during the passage of the 2018 Act for an opt-out guidance system. Now we are back to looking at this again. We still support that approach and new clause 1 would deliver it Colleagues, including my hon. Friends the Members for Perth and North Perthshire (Pete Wishart), for Kilmarnock and Loudoun (Alan Brown) and for Gordon and the hon. Member for North East Fife (Wendy Chamberlain), have passionately and eruditely explained why we have given such a focus to the so-called plumbers’ pension amendments in new clauses 4 and 5. I look forward to hearing the Minister’s response to the compelling arguments that my colleagues have made, but he should be reminded that these new clauses were arrived at with the support of campaigners who feel that the current legislation does not protect them. After hearing what my hon. Friends have said about the impact this has had over many years on their constituents—and presumably after some lobbying from across the House, because at least 30 colleagues have constituents who are impacted, including, according to the campaigners, the hon. Members for Berwickshire, Roxburgh and Selkirk (John Lamont) and for Moray (Douglas Ross) and the Secretary of State for Scotland—the Minister must surely be eager to do something Before the Minister speaks, I wish to point him to the correspondence he should have received last week from the director of Plumbing Employers Action Group Ltd., which should allay his fears about new clause 4 setting a precedent, or about passing on liabilities to other employers, as has already been outlined by my hon. Friend the Member for Gordon. It is worth remembering, through all this, that these plumbers have found themselves in this situation through no fault of their own, but because of a lack of information from trustees regarding their potential section 75 obligations. I hope that new clauses 4 and 5 can be accepted to ensure that nobody falls into bankruptcy and poverty through no fault of their own Our new clause 2 would help the UK Government in three areas. It would establish an independent advisory commission to look at the terms of this legislation. The Minister knows that it has been a long-term SNP policy to see an independent pensions and savings commission established. The scope of the Bill does not allow us to go that far, but this advisory commission could eventually become the standing commission we wish to see and a sounding board for long-term pensions and savings policy. It would ensure, for instance, that we never saw a repeat of the WASPI scandal In the meantime, new clause 2 would also allow the UK Government out of the bind that they find themselves in over commercial dashboards and financial transactions. We believe, as do many stakeholders in the industry, that the rush to see commercial dashboards with financial transactions could be extremely damaging. The hon. Member for Amber Valley has highlighted that risk The Minister has previously suggested that commercial dashboards are necessary to allow the independent public dashboard—the MaPS dashboard—to work, but that can only be the case if a deal has been done with the sector to allow commercial dashboards with transactional ability in exchange for the data that the providers have for the public dashboard. The Government could quite easily mandate that data to be provided without the incentive of early commercial dashboards and the risks of financial transactions. Time is the wisest counsellor of all, which is why I do not understand the Government’s determination to plough on without taking stock, without analysing the risks and without ensuring that savers do not suffer detriment from shifting so quickly to commercial dashboards and financial transactions We want to see the MaPS dashboard established quickly to provide impartial and reliable information for savers, and that is why we have brought back amendment 8 to reinsert the wording from the Lords that was removed in Committee. This has cross-party backing and backing from stakeholders. The public dashboard has the ability and the potential to be as revolutionary for pensions and savings as auto-enrolment has been, but that can only be the case if the Government get behind it and give it the space to develop. Also, the commission could help with what Members on all sides repeatedly turned to in Committee—namely, finding cross-party consensus on long-term pensions policy. This could be a safe space for those discussions and ensure that pensions policy stood the test of time, because there would be buy-in from all sides Our amendment 7 deals with open DB schemes. We have worked extensively with other parties to try to find a form of words to give the scheme providers comfort that they were not going to be forced into making investment decisions that were inappropriate for them. The importance of this has already been highlighted by the hon. Members for North East Fife and for Gloucester (Richard Graham) , as well as by my hon. Friend the Member for Gordon. There is a major concern that open DB schemes will need to de-risk, and there are potentially serious implications for them of doing so. In Committee, the Minister stated in response to one of my lines of questioning: "I want to make it clear again—I have said it once, but I will say it again—that the Government are not proposing to introduce a one-size-fits-all funding standard".––[Official Report, Pension Schemes Public Bill Committee, 5 November 2020; c. 81.] However, the CBI has contradicted him by saying: "The regulator’s proposals risk moving back to one-size-fits-all regulation…Businesses and trustees need to be confident that the new code will allow them to make decisions that benefit savers and the long-term health of companies." The Minister protested strongly about the Government’s intentions; it may not be their intention to introduce one-size-fits-all regulation, but the Minister is reckoning without the law of unintended consequences. In order to be sure, why not allow a safeguard to be on the face of the Bill to protect against the unintended consequences, identified by the CBI and others, which could otherwise see perfectly healthy DB schemes close down?