Kirsty Blackman MP: speeches 2025

Speeches

• 11 Sept 2025 · Pension Schemes Bill (Eighth sitting) · Hansard source

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  Does the hon. Gentleman share my concern, and will he suggest to the Minister, that although it is important for those who will have great big DC pots at some point in the future, because of auto-enrolment, it is also important for people to get advice if they have a mixture of DB and DC pots, or if they have small DC pots that have built up as a result of auto-enrolment? It is not just a future problem, but a problem for people who reach pension age between now and when those big DC pots are the norm.

• 11 Sept 2025 · Pension Schemes Bill (Eighth sitting) · Hansard source

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  I appreciate the reassurances that the Minister has given me. I beg to ask leave to withdraw the motion. Clause, by leave, withdrawn. New Clause 46 Trustees: independence “(1) The Pensions Act 1995 is amended as follows. (2) In section 29 (Persons disqualified for being trustees), after subsection (d) insert— ‘(da) he has a personal or financial interest in the pension scheme, except for member nominated trustees.’”— (John Milne.) This new clause makes pension scheme trustees truly independent of the sponsoring companies so that they can protect scheme members’ interests without any conflict of interest. Brought up, and read the First time .

• 11 Sept 2025 · Pension Schemes Bill (Eighth sitting) · Hansard source

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  When dashboards increase engagement, as we all expect they will, will the Minister report back to the House, or encourage someone to report back to the House, on how much engagement has increased by, so that we all have an awareness of it, rather than it being in stats kept in the background that we do not know about?

• 11 Sept 2025 · Pension Schemes Bill (Eighth sitting) · Hansard source

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  My understanding is that new clause 2 calls for a report. It addresses transparency. It is all well and good that stuff on competition regulations is published—I have no idea where it is published. We are asking for a report to the House, which we would all be able to access. I did not write the new clause, but it would be helpful if the Minister agreed to transparency and to review this in good time so that we can make better decisions on future legislation.

• 11 Sept 2025 · Pension Schemes Bill (Eighth sitting) · Hansard source

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  I am not as au fait with the terms of reference of the review as the Minister. Is it possible that it will say, “We recommend that another review is undertaken in five, 10 or 15 years?” Will it look at whether the review is all we need at this point in time or whether we will need another review in future?

• 11 Sept 2025 · Pension Schemes Bill (Seventh sitting) · Hansard source

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  I beg to ask leave to withdraw the amendment. Amendment, by leave, withdrawn.

• 11 Sept 2025 · Pension Schemes Bill (Seventh sitting) · Hansard source

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  I beg to move amendment 277, in clause 58, page 67, line 34, leave out from “application” to end of line 36 and insert “the Trustees agree, after due consideration, that it is the best option for their fund’s members;”. This amendment would prevent a fund from having to carry out an insurance buy-out option. The amendment asks a reasonable question about the duties of the trustees, and the possibility that they will be overwritten by the legislation and taken away from trustees. I would appreciate some reassurance from the Minister on whether the trustees will still have a duty to act in the best interests of scheme members once the legislation goes through, and whether the amendment tabled by the hon. Member for Tamworth would make things better for trustees, with them better able to act in the best interests of pension scheme members.

• 11 Sept 2025 · Pension Schemes Bill (Seventh sitting) · Hansard source

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  I have a quick question, which may also be relevant to other clauses that we discussed earlier, but which I did not bring up at that point. It is about the consistency of consultations and regulations from the Department for Work and Pensions and the Financial Conduct Authority, particularly when consultations are taking place and there are scheme members and prospective pensioners who expect their pension to work in the same way as others and do not have a clue what the arrangements are—for example, whether it is regulated by the FCA or anyone else. Can we still expect parity of service and clarity? I am aware that the different structures may require slightly different regulations. I want reassurance from the Minister on ensuring that scheme members see a consistent level of service that makes sense in the regulatory frameworks. I also want reassurance that larger organisations running different types of scheme can easily work within and respond to both types of consultation because there is enough consistency applicable across different regulatory mechanisms, within the constraints of the law and depending on the scheme type. I have been asked by insurance and pension industry professionals to raise that with the Minister, and any reassurance that he can give would be appreciated.

• 11 Sept 2025 · Pension Schemes Bill (Seventh sitting) · Hansard source

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  We have discussed other parts of the regime—for example, new entrants and their ability to scale up, and the longer-term prospects for that—which were perhaps a bit more flexible than this part. Although I am not entirely convinced that the exact wording of the amendment provides the best way to go about it, if the Minister gives some reassurance and a commitment to consider the possibility of not just taking a snapshot day, and to look at the potential ability to scale up or grow, I would be more comfortable with the legislation than I am currently.

• 11 Sept 2025 · Pension Schemes Bill (Seventh sitting) · Hansard source

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  I agree with the point that the Liberal Democrat spokesperson just made. The clauses represent good decisions both for those who work in the industry and for members of the public—people paying into pension schemes and hoping to get an adequate pension when they retire. I want to comment on a few things included in the clauses. The Work and Pensions Committee report that was published a couple of years ago asked for several of the changes that are being made here, and I appreciate that the Government are now moving towards making a significant number of them in what is the most major piece of pensions legislation we have seen in years. I do appreciate the changes being made. I am incredibly supportive of the changes to the terminal illness criteria, which create consistency with other Government legislation on the definition of terminal illness. As the Minister said, if this allows more people to access payments earlier and can improve their quality of life when they know how very short their remaining time is, it will be incredibly helpful. It will enable those individuals to access additional payments and funding more easily and quickly, so that they can make the most of the short time they have left. I appreciate that change. The pensions dashboard changes are sensible, because people will be able to see the widest possible range of things when they log into the dashboard. It will do what it says on the tin, which is to bring everything together in one place, rather than people having to go somewhere else. Lastly, I do not disagree on the PPF levy changes; I think this is the right decision. However, there is a significant surplus, and there are other things that could have been done with it; we will discuss new clauses 18 and 19 later. I thought the Government’s response to the Work and Pensions Committee report that I mentioned was sensible when it came to the PPF levy changes: “Yes, we agree this needs to be changed and we will look into it.” The response on the pre-1997 lack of uplift for members in the PPF and the FAS was not so helpful. It was more like, “Well, this is an impact on the Government’s balance sheet.” That is genuinely what the Government’s response says. I am concerned that there are two very different ways of looking at the answers to those questions. In both cases, the answer could have been: “There is a significant surplus. We agree we should do something about it.” Changes could then have been made to support people who are in some cases really struggling to make ends meet, as was mentioned in last Tuesday’s witness session. That could have made a significant difference to their lives. If the Government had committed to allowing or encouraging the PPF to apply an inflationary uplift and provide support—even if they did so in a particularly progressive way, to support folk with the lowest earnings—that would have made the biggest possible difference to people who are genuinely struggling right now.

• 11 Sept 2025 · Pension Schemes Bill (Seventh sitting) · Hansard source

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  I really appreciate the trip down memory lane that the hon. Member for Wyre Forest has taken us on. I wish I had the tenacity to hold on to “I told you so” for 14 years. I am going to say it all the time anyway, even though I will not be able to hold on as long as he has. Turning to the Liberal Democrats’ new clauses 1, 40 and 43, I am aware that the Government, and the people of these islands, are looking at the sufficiency and adequacy of pensions and ensuring that people can have adequate pensions when they reach retirement age. I appreciate that the review is being undertaken and that work is being done, but this is about an additional way to ensure that people think about that as early as possible. I have a colleague who says “EMILY”, which stands for “Early money is like yeast”, and it is the same in election campaigns as it is in pensions. The earlier people boost their pension fund the more it grows, because of the magic of compound interest. It is great that we have auto-enrolment at a relatively early age—albeit not early enough—so that people can begin to grow their pension pot. However, I do not think people understand the importance of putting as much money as they can into their pension pot as early as possible, as has been said, particularly when they are in their mid to late 20s and have so many competing interests—trying to get on the housing ladder, or paying for their university debts or for small children, who cost an inordinate amount of money. When people have all those competing interests at the same time, funding their own pension can fall down the list of priorities. However, if they were aware of how important it is to put that funding in as early as possible and how much it would mean to them in retirement, they might make slightly different choices. There are an awful lot of good things in these new clauses that could be explored. Around 40 is a sensible age at which advice could be provided, as new clause 1 suggests, because that would give people enough time to make some changes. Giving people more advice when they are initially auto-enrolled would also be incredibly sensible. They might not read it then, but they might. The more we can do to provide people with advice, the better, because then they will have the opportunity to take it up. As the pensions dashboard comes online, that may create a higher level of interest in finding out what everything looks like. Earlier in Committee, I made some points about DC pots and the difficulty in translating that number into what someone’s annuity, or their monthly or weekly payment, looks like, and that only increases and compounds the problem. People do not understand what this means for them in retirement, because it is difficult to do those sums without advice. It is not easy to try to work out, and even if people are given advice at 40, although it may take into account their circumstances at that point, these could drastically change by the time they reach retirement age. They may have a very different level of annuity from that which was suggested, even with the same predicted pension pot growing in the expected way. On targeted advice for cohorts that are saving less, with the review of adequacy it would help if the Government would commit to ensuring that undersaving groups are strongly considered, so that all the advice and tactics—whether automatic appointments or ensuring that people are given access to the pensions dashboard—are in place for the highest engagement. Lastly, on the auto-enrolment sessions, I have spoken about how when people hit 50 they are posted a bowel cancer screening test, and when people are of an age for vaccines they are given an appointment and just need to go along. People are posted a letter or sent an email saying, “This is the time and date for your smear test,” and they go along. We recognise that preventive measures are important. People are much more likely to take up that vaccine or smear test and are much more likely to also go to that session if we make it as easy as possible. The Liberal Democrat spokesperson, the hon. Member for Horsham, mentioned the Pension Wise service. It has an incredibly high level of satisfaction. If only any of us on this Committee or our parties had that level of support from our constituents—we would be absolutely dancing to get that level of positivity. The Pension Wise service has that level of positive feedback because people recognise and appreciate the advice. However, that advice is given once, or only after a certain point. My understanding is that a 25-year-old cannot phone, ask for an appointment and get an understanding of where things are looking for them and where that protection is. However, sending people an actual appointment and telling them that this is the time is something. They can then choose to cancel that appointment. Obviously, some people will not turn up; we see some people not turning up for vaccines. It does not stop us sending invitations to those vaccine appointments because we know they increase uptake. I have heard this Government—or maybe the previous one—complain about increased costs if there is an uptick in the number of appointments. There would obviously be an increase in costs and pressure on the service should more individuals engage. However, more people having a sufficient pension and being able to take informed decisions—pay more, or withdraw their DC pension in a sensible way, rather than just putting it into a bank account, which we have heard is what a significant number do—will save the Government money and contribute to the economy. If we increase the number of people with better access to more money in retirement we will grow the economy. Although there is likely to be spending associated with increasing the provision of advice, it would make such a positive difference to those individuals and the economy that it could not be a bad thing. I do not know whether today is the time to add the requirement for those appointments. If the Government were willing to consider the possibility of sending out appointment invitations, that would help. I would still support the amendment, but it would help. I know the review is taking place. If the Government committed to considering that as part of the review, that would be helpful—of course, if they could commit to just doing it, that would be better. Doing so would give us all an assurance and understanding that they are not just putting blockers in the way because it is been suggested by somebody else. We would like the Government to seriously consider it. If they are not willing, they should reply to MPs about why it is not possible and why they think it will not increase uptake. Hon. Members who spoke about the cost of advice are absolutely correct. It is not that people do not want advice—some may not want advice and will not care, others will just take whatever they happen to get when they hit retirement age and some do not have the capacity to understand the advice if they were to seek it out—but some simply cannot afford advice. They do not have the money today to pay for that advice. There is a group of people who cannot pay for advice now because we are in a cost of living crisis. Their electricity bills and so on have gone up and the price of food is still suffering from inflation. Those people may not have a couple of thousand pounds—perhaps significantly more—lying around to pay for that advice. The people who will have the most in retirement are the most likely to grow their pensions further because they are the only ones who can afford the advice. As the hon. Member for Horsham said, we need more people to know about Pension Wise, so that they can get some advice and make good decisions. I would appreciate it if the Minister would seriously consider all the amendments that have been tabled by the Liberal Democrats. Ordered, That the debate be now adjourned .—(Taiwo Owatemi.)

• 9 Sept 2025 · Pension Schemes Bill (Sixth sitting) · Hansard source

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  If you will give me a bit of leeway, Mr Turner, I promise to speak only once on default pension benefit solutions. I might stray slightly outwith clause 42. I am looking for clarity from the Minister on default pension benefit solutions. We have heard a lot of concern about how communications cannot be made to members, how there are possible issues with advertising and how members are communicated with. Can the Minister confirm that he is taking that concern seriously and has ensured that, under the General Data Protection Regulation and other data protection legislation, schemes can communicate legally with members in order to provide pension benefit solutions without being traced by the Information Commissioner’s Office or marketing regulators? Providers have raised that concern regularly. I made it clear on Second Reading and in the oral evidence sessions that I think this proposal is a good thing. It is a massive concern that so many people are taking a lump sum without any plan for what that might look like or how the rest of the money will enable them to continue to live their life as they would like. I am really pleased that we are moving towards a better situation. However, we have not asked providers to do this before; it is something new. Providers will have to upskill themselves to make this change, both in their conversations with scheme members and in assessing whether the solutions that they provide are the correct ones. Pension providers and insurers are used to putting people in boxes and saying, “This is a box of people for whom this solution might work.” However, some providers may not be used to clumping people together like that and providing solutions that will work for as many of them as possible. I do not think that there is a different way to do it. However, I would appreciate reassurance from the Minister that this will be kept under review; that there will be a significant amount of conversation with providers, as well as with scheme members who are receiving advice or a direction to a default scheme; and that regulators will keep an eye on whether the suggested default pension benefit solutions are appropriate for as many people as possible. Of particular interest to me is the review timescale. What will happen to ensure that the proposal is working as intended? As I say, I think it is the right thing to do, but I want to make sure it works. I want people to have the best possible outcomes in retirement. If the position is marginally better than it is today, that will be good but not great. It would be lovely if it were way better, and if people were being suggested or guided to the solutions most appropriate for them. We do not just want to move from people dumping everything in a bank account to some people not doing so. It would be great to know that the solutions provided were working for a majority of people. I would welcome any comfort that the Minister can give me on the review period and on what reassurance Parliament will have that people are being offered the solutions. As I say, provided that I get decent answers from him, I will be quite happy not to talk again for this entire portion of the Bill. I am sure that people will be delighted to hear that.

• 9 Sept 2025 · Pension Schemes Bill (Sixth sitting) · Hansard source

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  It looks like these amendments came up because of conversations with the regulator, which is looking to ensure that it can use the powers that the Bill intends to create. This is not the first time we have had amendments that have been suggested by the regulator. I would appreciate it if the Minister could go away, and, perhaps when he is making regulations or bringing forward future legislation on pensions, ensure that he has more in-depth chats with the regulator in advance, so the original legislation can be drafted in a way that will work for the regulator, rather than having to be amended after Second Reading.

• 9 Sept 2025 · Pension Schemes Bill (Sixth sitting) · Hansard source

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  I have a brief comment on Government amendment 117. Because there were so many amendments, it was quite difficult to ensure that the Minister went through all of them with a fine-toothed comb. The explanatory statement for this one does not make any sense to me—it perhaps makes sense to other people. Reading the explanatory statement was deeply unhelpful, and I ended up being more confused than I was before. I appreciate the intention—what the Minister said amendment 117 was for—and the way that he described the rest of the amendments in this group, but I am pointing out for future reference that it would be helpful if we could understand the explanatory statements.

• 9 Sept 2025 · Pension Schemes Bill (Sixth sitting) · Hansard source

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  I want to ask the Minister why the amendment has been tabled. Have the regulators asked for it so that they can get the information they need, or has the provision been identified by the Government? Basically, what consultation is being done to ensure that the amendment makes sense and is doing what people need it to do?

• 9 Sept 2025 · Pension Schemes Bill (Sixth sitting) · Hansard source

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  I rise to support amendment 276. It is similar to some of the points that I brought up earlier, which were also brought up in the oral evidence session, about the consistency and existence of that pipeline and the fact that it needs to be there. Reviewing in advance of a decision being made on mandation would be the sensible thing. I mentioned earlier the issue with chickens and eggs—which comes first?—and I think the amendment brings more of a focus in primary legislation on ensuring that the pipeline exists in order that these companies and organisations can meet their commitments under the Mansion House agreement. It is all well and good for them to have the Mansion House agreement, but if the opportunities are not there and are not investment-ready, it will be difficult for them to meet those targets. This is a sensible amendment, and I am more than happy to support it.

• 9 Sept 2025 · Pension Schemes Bill (Sixth sitting) · Hansard source

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  Once this measure beds in—once we have people being moved to default benefit solutions, or those boxes and the solutions have been created—how will it be kept under review? Will there be a process for review five years down the line, when a significant number of people have been moved to default benefit solutions, to ensure that it is working as intended and that any potential problems that Australia perhaps did not come across can be ironed out?

• 9 Sept 2025 · Pension Schemes Bill (Sixth sitting) · Hansard source

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  I appreciate the Minister’s clarification that I had talked about amendment 113 prematurely, but it was relevant in the context of the previous discussion. I also appreciate the Minister’s clarification on the definition of “product”. I understand why he wants to make the amendment to tighten the Bill up a wee bit; however, it potentially tightens it up too much. Before Report, will he consider whether the use of the word “product” is right? Does he need to look at including that word in the definitions provided at the end of clause 38—I do not think it is currently included—to cover not only the physical things or offerings to people in terms of the products and investments they could look at, but the niche and specific service provision that might be attractive to people who are looking to invest their pensions because they have specific life conditions, or because their life and work does not fit into a normal box? I appreciate the earlier clarification in respect of the default products, which was incredibly important and helped to clarify my mind, but it would be helpful if the Minister agreed to take away my suggestion. I can understand why the Liberal Democrats tabled new clause 3. We should consider where we are with the innovation pathway, and the fact that the new entrant pathway exists and the relevant regulations have not yet been created. I assume that the Minister and his team will listen to a huge number of people. Clause 38 says that “such persons as the Secretary of State considers appropriate” must be consulted; I hope that will be a wide group of people with significant experience in the industry. Given that so many of us have mentioned challenger banks and new financial institutions, perhaps the consultation will look at what has been learned in that respect and whether some of the innovative decisions, and the regulations that allowed the provision of innovative products, should be included in the scope of the regulations. I would rather the innovation be quite wide, rather than quite tight, given that the scale thresholds and requirements have to be met anyway. If somebody has a credible plan to reach that scale, surely pretty much any of the innovative solutions they may be suggesting are good, because they are also providing a credible plan to get that significant level of scale and the efficiencies that come along with that. Potentially the definition of products in the defined terms at the end could be a good vehicle for the Minister to ensure that the scope is as wide as he would like it to be.

• 9 Sept 2025 · Pension Schemes Bill (Fifth sitting) · Hansard source

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  I thank the Minister for that clarification. These are almost two different stages in the same process: we need to do the consolidation of the small pots right now, and then look at what we are going to do so that small pots will not ever exist and nobody will end up with a small pot, because we do one of the two options or some other option presented for the next step. My understanding is that if we were to move to what the Conservatives have proposed in new clause 36, that would solve future problems but probably not deal with the situation where somebody has five small pots already. It does not schoomp them all together—I do not know how you are going to write that, Hansard ; I am really sorry. I appreciate what the Minister says about ensuring that the next step is kept under review and not automatically ruling out some of the options presented for the future. I tend to agree that we need to get this bit done—get rid of all those tiny pots that are dormant right now—and then move on to having that discussion, perhaps as part of the sufficiency and adequacy discussions, so that we have a pensions system that ensures that people are as well off as they possibly can be in late life. Question put and agreed to. Clause 32 accordingly ordered to stand part of the Bill. Clause 33 ordered to stand part of the Bill. Clause 34 Interpretation of Chapter Amendment made: 42, in clause 34, page 31, line 1, leave out “No. 42, ‘FCA-regulated person’” and insert “‘FCA-regulated’, in relation to a person,”— (Torsten Bell.) This amendment is consequential on Amendment 41. Clause 34, as amended, ordered to stand part of the Bill. Clauses 35 and 36 ordered to stand part of the Bill. Clause 37 Repeal of existing powers Amendment made: 43, in clause 37, page 34, line 20, at end insert— “(3) In consequence of subsection (1)(b), in section 256 of the Pensions Act 2004 (no indemnification for fines or civil penalties), in subsection (1)(b), for ‘that Act’ substitute ‘the Pensions Act 2014’.”— (Torsten Bell.) This amendment amends section 256(1)(b) of the Pensions Act 2004 in consequence of the repeal of Schedule 17 to the Pensions Act 2014 by clause 37(1)(b) of the Bill, including uncommenced amendments of section 256(1)(b) on which the reference to “that Act” in section 256(1)(b) relies. Clause 37, as amended, ordered to stand part of the Bill. Clause 38 Certain schemes providing money purchase benefits: scale and asset allocation

• 9 Sept 2025 · Pension Schemes Bill (Fifth sitting) · Hansard source

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  Although I am delighted by the intention of the hon. Member for Wyre Forest to get one over Reform with amendment 275, and I am quite happy to back that notion, I am also pretty happy with nationalised water in Scotland. Scottish Water is significantly better performing than the other water companies, so I would not automatically say that nationalised water is a bad thing, given that our water is lovely in Scotland. However, we could do with a little more rain on the north-east coast, given that we have had the driest spring and summer for 40 years, which is not ideal. I gently disagree with the hon. Member because the amendment does not take into account the Scottish context. I would love to see more investment in Scottish Water from pension funds or from Government-led investment vehicles or decision making. On amendments 248 and 249, I am much more relaxed about mandation than the Conservatives are, as Members might expect given my ideological position. I have much less of an issue with going in that direction. I have heard all the Government have said about not planning to use those powers. It is reasonable for the Government to direct the economy in certain directions—that is what tax and Government spend are for. A good chunk of that is about ensuring that we make interventions so that the economy grows in the way that we want it to. In many cases, Governments have historically refrained from picking winners when a decision to do so could have grown the economy faster. For example, historically, the Government could have given more backing to certain ports to ensure that they could grow, particularly through renewable energy or by building offshore wind farms, because we could do with more local capacity throughout the UK. Had Governments of all colours been clearer about which areas and regions they were backing, that understanding could have enabled those areas to win more contracts. On new clause 4, the options for how mandation could work and the investment vehicles that are in place, I have talked about affordable and social housing development. The biggest thing the Government could do to encourage social housing, in particular, is to cancel the right to buy, which would allow local authorities to build significant levels of social housing. That is how we are managing to increase our housing stock in Scotland. We are not there yet—nobody says that we are—but we are able to build new social housing in Scotland at a scale that most local authorities south of the border are not, because cancelling the right to buy has made it affordable. I would love to see more investment in social housing. I would have liked renewable energy to be included in the Lib Dems’ new clause 4. I appreciate that we cannot include everything, but it would have been nice, particularly when it comes to smaller renewable energy projects and in combined heat and power initiatives. Large-scale CHP makes a really positive difference in Aberdeen city. We have a large combined heat and power network, which heats a significant number of our multi-storey blocks at far lower prices. They are still seeing an increase in prices, absolutely, but they do not need to worry about putting money in the meter, because they know they will have hot water and heating for a fixed monthly fee, rather than paying more in winter and less in summer. Lastly, harking back to the Future Generations Commissioner for Wales, it would be interesting for the Government to consider whether any potential mandation benefits future generations, given the intergenerational gap and given that people my age and younger are increasingly of the view that we will never get a state pension, because it will simply not exist by the time we reach retirement age—I am sorry if not everybody is at that level of cynicism, but most people my age and younger are. Looking at where our private pensions are invested and at the Government’s direction of travel, it would at least be an interesting thought exercise, in advance of any Government decision on mandation, to consider whether that money would benefit future generations or make things worse for them. In Wales, decisions can be called in for judicial review, should a public authority act against the wellbeing of future generations. Looking at whether investments that could be directed by the Government would benefit or have a detrimental impact on future generations would be an interesting way to tie the Government’s hands. That way, we could see investment not simply in massive motorways, High Speed 2 or dual carriageways, but in things that have a demonstrable benefit, or at least no adverse impact, on the wellbeing of future generations. Surely that should be a positive thing for us all, given our huge responsibilities for the future of the planet and to those who will be living on these islands. Requiring that to be considered when the Government look at mandation could be a great way to do it. I am not sure what I will do when we come to new clause 4—it will be voted on at the very end because it is a new clause. I like the idea, but I am not convinced that I would go down that exact route. I will not be supporting the Conservative amendments in this group, which I understand the shadow Minister is terribly shocked about, but there are places where we can have significant ideological disagreements, and this is definitely one of them.

• 9 Sept 2025 · Pension Schemes Bill (Fifth sitting) · Hansard source

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  I want to make a brief comment about the definition of “specialist”. I appreciate the Minister’s clarification about the default products provided, but there could be a sensible definition of “specialist” that included, for example, that if providers can demonstrate that over 75% of their members engage in the management of their pension fund every year, that would be a very specialist and well-liked service. I understand that the scale is incredibly important. However, if a provider can demonstrate that level of engagement in its pension scheme, because of its innovative product or service, I think it would be sensible to look at the scale requirements, even if that provider does not yet meet them. The Opposition have kindly left it up to the Minister and the Government to define what “specialist” would be, so I will support the Opposition amendments on that matter. However, when we come to Government amendment 113, I will require some clarification from the Minister about the definition of “products”.

• 9 Sept 2025 · Pension Schemes Bill (Fifth sitting) · Hansard source

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  Amendments 250 to 253, as well as Government amendment 113, which we will discuss later, clarify the word “innovation” and look at how best to define it. There are two different approaches from the Government and the Opposition to what innovation means. I raised the issue of defining innovation on Second Reading, so I am glad that both parties are trying to clarify it here, but I am not entirely happy with the way in which the Government have chosen to do so. When we come to Government amendment 113, I do not feel that the chosen definition of “innovative products” is necessarily right. There could be a way of working that is innovative not in the product but in the way people access the product. For example, some of the challenger banks that we have had coming up are not necessarily providing innovative products, but they provide innovative ways to access those products, and in some cases, their pitch is that they provide a better interface for people to use. I think there is potentially a niche in the market for innovative services rather than innovative products. Government amendment 113 perhaps ties too much to products, although it depends on what the definition of “products” is. Obviously regulations will come in behind this that define “innovative”, but I think the pitch made by the Opposition for the addition of “or specialist” is helpful. “Innovative” suggests that it may be something new, whereas there could be specialist services that are not of that size but are specific to certain groups of people who value the service they are receiving, one that is very specific to their circumstances, and who would prefer that operation to keep running and to keep having access to it because of the specialist service that is provided. I am concerned about Government amendment 113. My views are perhaps closer to the Conservatives’ amendment, but thinking particularly about services rather than the products, and the way in which the services are provided to people and the fact that there could be innovation in that respect. Also, as the hon. Member for Wyre Forest said, there could be particular niche areas that do not need to be that size in order to provide a truly excellent service to perhaps a small group of people. It depends on how the Government define “innovative” and what the regulations may look like this, but I am inclined to support the Conservatives’ amendment.

• 9 Sept 2025 · Pension Schemes Bill (Fifth sitting) · Hansard source

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  I am now entirely confused. Can the Minister please clarify for all of us what the Bill actually does in terms of the consolidation?

• 9 Sept 2025 · Pension Schemes Bill (Fifth sitting) · Hansard source

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  I am happy to support the Liberal Democrat amendment. I have already mentioned the Regulatory Policy Committee’s impact assessment—it considers the monitoring and evaluation plan to be weak, saying: “The policies are all due to be reviewed in 2030. More detailed plans are needed, outlining success metrics, reporting requirements, and methodologies, across the policies.” The amendment fits quite neatly into what the RPC said, which looks for an understanding and acceptance that there needs to be regular reviews, given that the Government have not committed to a three-year—or shorter—time period on this issue. There seems to be widespread support for the small pots consolidation across the House. This amount has been picked, and as I said in a previous sitting, there is not necessarily a perfect answer. It could be that change is required, or that all the companies and organisations that are consolidating small pots immediately manage to do it amazingly. It could happen as smoothly as possible, as a result of which the Government could decide to increase the threshold. I think that compelling the Secretary of State to look at this is completely reasonable to ensure that they are doing it on a relatively regular basis, so that the threshold can be changed if necessary. There is potentially widespread support across the House for ensuring that there is a requirement to monitor the threshold on an ongoing basis. It is not that we do not trust, agree with or appreciate the Secretary of State’s work, but it would give us a level of comfort that it would be done regularly should the Minister accept that, consider something similar on Report or, at the very least, make a commitment from the Dispatch Box that a written statement will be made to Parliament on a fairly regular basis explaining the reasons for keeping or changing the level.

• 9 Sept 2025 · Pension Schemes Bill (Fifth sitting) · Hansard source

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  I have just one more brief comment. It drives me completely mad that whoever is standing at that Dispatch Box seems to believe that they will be in government in perpetuity. Given that this is the second colour of Government I have faced across the Committee floor, it may be that the Minister and his Secretary of State—who has changed, by the way—are very keen on doing a regular review, and I appreciate the Minister committing to it. However, it is not that easy for him to commit a Secretary of State of a different political stripe. Therefore, to give us all certainty, it would be great if the Minister went away and considered the possibility of including a more regular review on Report, so that a Secretary of State of any party is required to conduct one more regularly.