Found: It is good to see the Value for Money framework included in this years’ Pension Schemes Bill, which

Found: We were discussing the Pension Schemes Bill in the House—it had its Second Reading last Monday, I think

Found: We were discussing the Pension Schemes Bill in the House —it had its Second Reading last Monday, I

Found: The Pension Schemes Bill is going through the House at the moment, and we had the Mansion House speech

Found: We are engaged with them on a range of things in the pension space, including the Pension Schemes Bill

Found: Debbie Abrahams MP Chair, Work and Pensions Select Committee 6 June 2025 Dear Debbie, PENSION SCHEMES BILL

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment he has made of the progress of reform of the private pension system.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

We are committed to making reforms to the workplace pensions system to deliver better outcomes for UK savers and pensioners and to increase productive investment in the UK economy.

We have already completed our landmark Pensions Investment Review, which reported in May 2025. The Pension Schemes Bill, which was introduced in June, will legislate for the outcomes of the Review, in addition to other reforms to the pensions system. Our Bill Impact Assessment shows around 20 million savers could benefit and an average earner saving over their career could have around £29,000 more in their defined contribution pension pot at retirement as a result of the package of measures.

Additionally, the Bill will unlock some of the estimated £160 billion of surplus funds from well-funded Defined Benefit pension schemes to benefit sponsoring employers and members, with appropriate safeguards in place to protect members.

In July we launched the next phase of our reform agenda. The time is now right to finish the job started by the Turner Commission two decades ago and that is why we have revived the Commission, which is led by Baroness Jeannie Drake, Sir Ian Cheshire and Professor Nick Pearce. The Pensions Commission will make recommendations to ensure we have a pensions system that is strong, fair and sustainable.

Our reforms will also boost investment and growth in the UK. The Mansion House Accord will see leading workplace pension providers invest 10% of their workplace portfolio in productive assets such as infrastructure, property, and private equity. At least half of this will be in the UK.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential impact of increasing pension fund investment in private markets and infrastructure on the economy.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

In May, 17 of the largest workplace pension providers signed the Mansion House Accord and voluntarily committed to invest at least 10 per cent of their defined contribution main default funds in private markets by 2030, with at least half of that invested in the UK.

This is expected to unlock £50 billion of additional private market investment by 2030, including £25 billion in the UK. As providers work towards meeting these commitments, they will be investing more in private assets such as infrastructure projects.

Additionally, the measures in the Pension Schemes Bill, introduced in July, will ensure pension schemes have the scale and expertise to access these types of investment.

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, with reference to the UK’s Modern Industrial Strategy, CP 1337, published on 23 June 2025, what progress she has made on reforming the Local Government Pension Scheme to consider local growth priorities in investment strategies.

Answered by Alison McGovern - Minister of State (Housing, Communities and Local Government)

The Pension Schemes Bill includes a new power to require Local Government Pension Scheme (LGPS) funds to include their approach to local investment in their investment strategies. The Pensions Schemes Bill and the English Devolution and Community Empowerment Bill also include new reciprocal duties on LGPS funds and strategic authorities to cooperate to identify and develop appropriate local investment opportunities. Wider reforms including consolidation of all LGPS assets in the LGPS asset pools and improved governance will also support LGPS investment in local and regional growth priorities.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to help increase the return on investment from pension savings.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

This house legislated to auto-enrol millions of employees into pension saving and the onus is on us to ensure they get the best possible returns.

The Pension Schemes Bill will do exactly that, via bigger, better pension schemes, a value for money framework and tackling small pots.

Average earner savings over their working life could have their pension pot boosted by £29,000.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what impact the Pension Commission will have for residents in (a) Dunstable and Leighton Buzzard constituency and (b) Bedfordshire.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

This government is committed to enabling tomorrow’s pensioners to have security in retirement. The Pensions Investment Review and the Pension Schemes Bill currently going through Parliament both focus on ensuring the pension pots of savers in Bedfordshire and throughout the UK are working as hard as they can – for average earners saving in a DC workplace pension over their career this could mean up to £29,000 more in retirement pots. The Pensions Commission has been revived to consider what is required in the long term to deliver financial security in retirement through a pensions framework that is stronger, fairer and more sustainable for people up and down the country.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the potential impact of extending pensions automatic enrolment to jobholders under the age of 22 on those people.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

We are committed to ensuring people achieve financial security in later life.

That is why we prioritised the Pensions Investment Review and reforms in the Pension Schemes Bill – so that we can be confident savers automatically enrolled into workplace pension schemes can rightly enjoy the best possible outcomes.

Our assessment of the pensions system is that the job is only half finished. In August we published a detailed report with our analysis, including on Automatic Enrolment and those groups not benefitting from pensions or undersaving. Furthermore, we have revived the Pensions Commission to address these very matters of adequacy, fairness and sustainability, especially for lower earners.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the adequacy of the Pensions (Extension of Automatic Enrolment) Act 2023.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

We are committed to ensuring people achieve financial security in later life.

That is why we prioritised the Pensions Investment Review and reforms in the Pension Schemes Bill – so that we can be confident savers automatically enrolled into workplace pension schemes can rightly enjoy the best possible outcomes.

Our assessment of the pensions system is that the job is only half finished. In August we published a detailed report with our analysis, including on Automatic Enrolment and those groups not benefitting from pensions or undersaving. Furthermore, we have revived the Pensions Commission to address these very matters of adequacy, fairness and sustainability, especially for lower earners.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she plans to implement the Pensions (Extension of Automatic Enrolment) Act 2023.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

We are committed to ensuring people achieve financial security in later life.

That is why we prioritised the Pensions Investment Review and reforms in the Pension Schemes Bill – so that we can be confident savers automatically enrolled into workplace pension schemes can rightly enjoy the best possible outcomes.

Our assessment of the pensions system is that the job is only half finished. In August we published a detailed report with our analysis, including on Automatic Enrolment and those groups not benefitting from pensions or undersaving. Furthermore, we have revived the Pensions Commission to address these very matters of adequacy, fairness and sustainability, especially for lower earners.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she plans to bring forward legislative proposals to ensure that more customers can access pension pot consolidation more quickly.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Government is committed to the consolidation of small workplace pension pots, when in the best interests of savers. The Pension Schemes Bill 2025 was introduced into Parliament on the 5 June. This includes measures to address the growing issue of deferred small pots, which normally arises when individuals change jobs and accumulate multiple pots over their working lives.

This will ensure workplace pension pots, initially worth £1,000 or less are automatically consolidated, unless members choose to opt-out. This will address the 13m stock of deferred small pots, and any future small pots that are created. As announced in our recent publication, ‘Workplace pensions: a Roadmap’ The report can be found here: https://www.gov.uk/government/publications/workplace-pensions-a-roadmap/workplace-pensions-a-roadmap#roadmap.

However, savers do not need to wait for legislation to benefit from consolidation. Currently, individuals can transfer and consolidate their pension pots themselves through a member-initiated transfer.

This will also soon be aided by the introduction of pensions dashboards. Once launched, pensions dashboards will allow people to find and view their pensions, including State Pension, securely and in one place online. This will help people to reconnect with each of their pension pots and better plan for retirement.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department has had discussions with private pension schemes on ensuring that people who have made contributions to defined benefit private pensions are able to benefit from a pension surplus.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Department for Work and Pensions consulted on surplus release from defined benefit pensions schemes last year. Throughout the consultation, and in developing the consultation response and the Pension Schemes Bill, the Department has engaged with pension schemes, representatives of their members, sponsoring employers and trustees. We recognise the valuable perspectives of stakeholder groups.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment she has made of the need to clarify trustee fiduciary duties regarding inflation protection.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

I understand the concerns that have been raised over the issue of inflation protection for defined benefit pensions (indexation). Discretionary indexation is over and above statutory and scheme requirements. Trustees can already award discretionary increases where scheme rules allow. Decisions on discretionary benefits are usually exercised by the trustees with the agreement of the sponsoring employer.

The Pension Schemes Bill makes changes so that more trustees of well-funded schemes have the flexibility to share their scheme surplus with employers, subject to strict funding safeguards for members. Scheme trustees are required to act in the interests of scheme beneficiaries, and can agree with employers how members can benefit from the release of any surplus which may include discretionary indexation.

The Pensions Regulator (TPR) has expressed that trustees should consider the situation of those members who would benefit from a discretionary increase and whether the scheme has a history of making such awards. TPR will be producing further guidance on surplus sharing once the legislation is in place.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department plans to ensure that pension scheme trustees are able to use surplus funds to provide discretionary increases for pre-1997 pensioners whose pensions have not kept pace with inflation.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

Discretionary indexation is over and above the statutory requirements. This discretion is usually exercised by the trustees with the agreement of the sponsoring employer.

The precise design of pension benefits is a matter for employers and trustees and is not covered in Department for Work and Pensions legislation. Pension scheme rules regarding pension entitlements are many and varied and must remain a matter for employers and scheme trustees to decide.

The Pension Schemes Bill 2025 makes changes so that more trustees of well-funded schemes have the flexibility to share their scheme surplus with employers, subject to strict funding safeguards for members.

Scheme trustees are required to act in the interest of scheme beneficiaries. Working with sponsoring employers, they will be responsible for decisions around surplus release. Together they will agree how members can benefit from any release of surplus, which could include discretionary benefit increases.

The Pensions Regulator already expects that trustees should be aware of members who would benefit from any decision to award a discretionary increase and whether the scheme has a history of making such awards.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether she has had discussions with pension funds on investing in infrastructure improvements in (a) towns, (b) Crewe and (c) Nantwich.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Chancellor routinely engages with a wide range of stakeholders – including pension funds – to ensure that government policy is robust and deliverable.

The government introduced the Pension Schemes Bill on 5 June 2025. The Bill provides the necessary legislative framework to implement the government's ambitious reforms for the pensions market. We will expect to see benefits for both members and the wider economy through productive investment.

These reforms include measures to drive scale and consolidation in the defined contribution workplace pensions market and the Local Government Pension Scheme (England and Wales). These reforms will unlock billions of pounds in investment for productive assets, improve efficiency in the LGPS, and deliver better returns for savers.

As part of these reforms, each LGPS Administering Authority will be required to specify a target allocation for local investment , which their asset pool will be expected to implement. Pools will also be required to work in partnership with Local and Mayoral Combined Authorities in identifying investment opportunities in support of local growth.

The measures in the Pension Schemes Bill will also ensure pension schemes have the scale and expertise to access a wider range of investments. The Chancellor is clear that she wants to see more investments flowing into high growth companies and infrastructure.

Additionally, on 13 May, 17 of the largest workplace pension providers signed the Mansion House Accord and voluntarily committed to invest at least 10 per cent of their defined contribution main default funds in private markets by 2030, with at least half of that invested in UK private assets.

This is expected to unlock £50 billion of additional private market investment by 2030, including £25 billion for the UK. As providers work towards meeting these commitments, they will be investing more in private, illiquid assets such as infrastructure projects.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent discussions she has had with Hewlett Packard on the change in value of pre-1997 pension scheme members’ pensions; and what steps she is taking to support affected pensioners.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Department for Work and Pensions has had no discussions with Hewlett Packard on this issue. Discretionary increases in benefits above the statutory minimum and those required by scheme rules are a matter for the scheme sponsor and trustees.

Most schemes do pay some pre-1997 indexation, because of scheme rules or as a discretionary benefit. Analysis published last year by the Pensions Regulator shows that as of March 2023, only 17 per cent of members of private sector defined benefit pension schemes did not receive any pre-1997 indexation on benefits. This information can be found at: https://www.thepensionsregulator.gov.uk/en/document-library/research-and-analysis/data-requests#f3a5fe60511a445f91112bd7dd8a64ae

The Government’s pension reforms on the use of surpluses in defined benefit schemes will make it easier for individual schemes to make decisions that improve outcomes for both sponsoring employers and members, which could include discretionary benefit increases. These changes are being taken forward through the Pension Schemes Bill which had its second reading on Monday 7^th July.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment her Department has made of the potential impact the Pension Schemes Bill on the savings of people in (a) Dunstable and Leighton Buzzard constituency and (b) East of England.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Pension Schemes Bill could mean nationally an average earner saving over their career may have around £29,000 more in their Defined Contribution pension pot at retirement. In total, around 20 million savers could benefit from the Bill and around 2 million are estimated to be in the East of England. Breakdowns by constituency are not available. See page 52-53 of the Pension Schemes Bill Impact Assessment for further details.

Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government what guidance they will issue to Local Government Pension Scheme administering authorities and pools on identifying, evaluating and prioritising local investment opportunities under the provisions in the Pension Schemes Bill.

Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)

LGPS funds and strategic authorities will be required to co-operate with each other to identify and develop appropriate investment opportunities, but there is no plan to require local authorities or mayors to submit business cases. LGPS funds and strategic authorities should agree how best to work together within their region.

The decision to make local investments will be the responsibility of the pool who must implement the strategy set by partner funds. This delegation to the pools will help funds to manage potential conflicts of interest such as political pressures. While funds will be required to have regard to local growth plans and priorities, they have a legal fiduciary duty to pay benefits in the first instance. The pools will be FCA-regulated investment managers with the capacity to set their own assessment criteria for making local investments and will be required to conduct due diligence on local investments.

The Government will issue supporting guidance on these issues in due course.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps his Department is taking to ensure that pension schemes are encouraged to address long-term climate and biodiversity risks in their investment strategies.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

While the Department does not hold data on the proportion of UK pension fund assets allocated to climate solutions, we do require pension schemes to evaluate Environmental, Social, and Governance (ESG) factors, including climate change, in their investment strategies. Specifically, trustees of larger schemes are required to assess and report on climate-related risks and opportunities, including investments in climate solutions. This reporting is done in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

We will be considering whether to update sustainability reporting, following our review of the TCFD Regulations this year, and the outcomes to the two Government’s consultations currently underway on UK Sustainability Reporting Standards and our Transition Plans manifesto commitment. Measures outlined in these aims on improving transparency and accountability across the economy, helping investors—including pension schemes—understand how climate and nature-related issues affect their investment choices.

Measures outlined in The Pension Schemes Bill, concerning productive investment and consolidation of UK occupational workplace pension schemes, can significantly benefit social and environmental objectives by enabling larger, more efficient schemes to engage more effectively with companies on ESG issues, and to invest in a wider range of assets, including those focused on sustainability and long-term impact, such as, infrastructure, renewable energy, and other socially responsible projects.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department plans to integrate climate and nature-related financial risk into legislative and regulatory reforms arising from the Pension Schemes Bill.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

While the Department does not hold data on the proportion of UK pension fund assets allocated to climate solutions, we do require pension schemes to evaluate Environmental, Social, and Governance (ESG) factors, including climate change, in their investment strategies. Specifically, trustees of larger schemes are required to assess and report on climate-related risks and opportunities, including investments in climate solutions. This reporting is done in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

We will be considering whether to update sustainability reporting, following our review of the TCFD Regulations this year, and the outcomes to the two Government’s consultations currently underway on UK Sustainability Reporting Standards and our Transition Plans manifesto commitment. Measures outlined in these aims on improving transparency and accountability across the economy, helping investors—including pension schemes—understand how climate and nature-related issues affect their investment choices.

Measures outlined in The Pension Schemes Bill, concerning productive investment and consolidation of UK occupational workplace pension schemes, can significantly benefit social and environmental objectives by enabling larger, more efficient schemes to engage more effectively with companies on ESG issues, and to invest in a wider range of assets, including those focused on sustainability and long-term impact, such as, infrastructure, renewable energy, and other socially responsible projects.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether the Pension Schemes Bill will include provisions to (a) support and (b) incentivise investment by pension funds in climate transition-related assets.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

While the Department does not hold data on the proportion of UK pension fund assets allocated to climate solutions, we do require pension schemes to evaluate Environmental, Social, and Governance (ESG) factors, including climate change, in their investment strategies. Specifically, trustees of larger schemes are required to assess and report on climate-related risks and opportunities, including investments in climate solutions. This reporting is done in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

We will be considering whether to update sustainability reporting, following our review of the TCFD Regulations this year, and the outcomes to the two Government’s consultations currently underway on UK Sustainability Reporting Standards and our Transition Plans manifesto commitment. Measures outlined in these aims on improving transparency and accountability across the economy, helping investors—including pension schemes—understand how climate and nature-related issues affect their investment choices.

Measures outlined in The Pension Schemes Bill, concerning productive investment and consolidation of UK occupational workplace pension schemes, can significantly benefit social and environmental objectives by enabling larger, more efficient schemes to engage more effectively with companies on ESG issues, and to invest in a wider range of assets, including those focused on sustainability and long-term impact, such as, infrastructure, renewable energy, and other socially responsible projects.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department has made an estimate of the proportion of UK pension fund assets currently allocated to climate solutions.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

While the Department does not hold data on the proportion of UK pension fund assets allocated to climate solutions, we do require pension schemes to evaluate Environmental, Social, and Governance (ESG) factors, including climate change, in their investment strategies. Specifically, trustees of larger schemes are required to assess and report on climate-related risks and opportunities, including investments in climate solutions. This reporting is done in accordance with the Task Force on Climate-related Financial Disclosures (TCFD) recommendations.

We will be considering whether to update sustainability reporting, following our review of the TCFD Regulations this year, and the outcomes to the two Government’s consultations currently underway on UK Sustainability Reporting Standards and our Transition Plans manifesto commitment. Measures outlined in these aims on improving transparency and accountability across the economy, helping investors—including pension schemes—understand how climate and nature-related issues affect their investment choices.

Measures outlined in The Pension Schemes Bill, concerning productive investment and consolidation of UK occupational workplace pension schemes, can significantly benefit social and environmental objectives by enabling larger, more efficient schemes to engage more effectively with companies on ESG issues, and to invest in a wider range of assets, including those focused on sustainability and long-term impact, such as, infrastructure, renewable energy, and other socially responsible projects.

Question to the HM Treasury:

To ask His Majesty's Government what plans they have to mandate investment in British assets; the timing of any proposed mandate; and when an impact assessment will be published.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

On 13 May 2025, 17 of the UK’s largest pension providers signed the Mansion House Accord.

The Accord is an industry-led voluntary commitment by signatories to invest 10% of their main defined contribution default funds in private markets, half of which will be in the UK, by 2030. This will mean £50bn of investment in private markets from these providers, including over £25bn in the UK.

As announced in the Final Report of the Pensions Investment Review, the Pension Schemes Bill includes powers that will enable the government, in future, to apply binding asset allocation requirements on workplace DC default funds.

The government does not anticipate it will use the reserve powers, which are designed to serve as a backstop for use if the defined contribution pensions industry fails to make sufficient progress following the voluntary commitment.

The legislation contains a range of safeguards, including a requirement that, prior to introducing any requirements, the government publish a report regarding the impact of the proposed measures on savers and economic growth. Additionally, the powers are time-limited and will expire in 2035 if they have not been exercised.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will consider making provision for mandatory index-linked payments in pre-1997 defined benefit pension schemes.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

Members of these pension schemes are understandably concerned at seeing inflation erode the value of their retirement income.

Most schemes do pay some pre-1997 indexation, because of scheme rules or as a discretionary benefit. Analysis published last year by the Pensions Regulator shows that as of March 2023, only 17 per cent of members of private sector defined benefit pension schemes do not receive any pre-1997 indexation on benefits. This information can be found at: https://www.thepensionsregulator.gov.uk/en/document-library/research-and-analysis/data-requests#f3a5fe60511a445f91112bd7dd8a64ae

It would be unreasonable to retrospectively legislate to increase the cost to schemes for benefits already earned, as these costs could not have been taken into account in the funding assumptions used to set contribution rates at the time.

The Government’s pension reforms on the use of surpluses in defined benefit schemes will make it easier for individual schemes to make decisions that improve outcomes for both sponsoring employers and members, which could include discretionary benefit increases. These changes are being taken forward through the Pension Schemes Bill which had its second reading on Monday 7^th July.

The Pensions Regulator (TPR) has expressed that trustees should consider the situation of those members who would benefit from a discretionary increase and whether the scheme has a history of making such awards. TPR will be producing further guidance on surplus sharing once the legislation is in place.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether her Department has made an estimate of the proportion of UK pension scheme assets invested in fossil fuel-related holdings; and what plans she has to (a) encourage phased divestment from fossil fuels and (b) promote greater investment in climate solutions through the Pension Schemes Bill.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

While the Department does not hold data on the proportion of UK pension scheme assets invested in fossil fuels, our largest pension schemes are mandated to conduct climate scenario analysis and report on their climate-related financial risks, including those related to fossil fuels. This is done under the framework of the Task Force on Climate-related Financial Disclosures (TCFD). The Pensions Regulator (TPR) has published guidance on climate-related reporting, reviewed how schemes are addressing climate risks, and provided feedback to the industry on areas for improvement. TPR reports that the UK pension sector is increasingly playing a role in tackling climate change, with many schemes setting net-zero targets and actively engaging with companies to reduce emissions.

This government is however not complacent and is determined to make the UK a clean energy superpower and meet our net zero goals. The government is currently consulting on the development of UK Sustainability Reporting Standards and our Transition Plans manifesto commitment. These measures aim to improve transparency and accountability across the economy, helping investors—including pension schemes—understand how climate and nature-related issues affect their portfolios. To support this, the Department for Work and Pensions is to undertake a review of the effectiveness of the climate reporting requirements this year considering feedback from stakeholders.

The reforms outlined in the Pensions Scheme Bill do not include a general requirement for pension schemes to divest from certain assets or industries. The larger, more consolidated system, for which we will legislate, will however be better equipped to manage systemic risks, as well as invest more in projects and businesses that support the shift towards a more sustainable and lower-carbon future.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps her Department is taking to safeguard members' benefits when a sponsoring employer seeks to extract pension scheme surpluses.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

Currently, some Defined Benefit schemes can already consider releasing their surplus under existing rules. The Pension Schemes Bill will provide more flexibility for trustees of these and other well-funded schemes to safely share some surplus with employers and members. This is underpinned with strict funding safeguards to ensure members’ pensions are protected.

Scheme trustees are required to act in the interest of scheme beneficiaries and will be responsible for agreeing to any decisions on surplus release. Schemes will also need to meet a minimum funding level and require actuarial certification before the release of any surplus. Further, our scheme funding regulations, overseen by the Pensions Regulator, require that trustees maintain a strong funding position so they can pay members’ future pensions when they fall due, including planning for future volatility.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if he will bring forward legislative proposals to give pension scheme trustees the authority to award discretionary increases to those already claiming a pension.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

Discretionary indexation is over and above the statutory requirements. This discretion is usually exercised by the trustees with the agreement of the sponsoring employer. Some schemes have previously paid discretionary increases on a regular basis. However, these increases are not part of the pension package promised.

The precise design of pension benefits is a matter for employers and trustees and is not covered in the Department for Work and Pensions legislation. Pension scheme rules are many and varied and must remain a matter for employers and scheme trustees to decide.

The Pension Schemes Bill makes changes so that more trustees of well-funded schemes have the flexibility to share their scheme surplus with employers, subject to strict funding safeguards for members. Scheme trustees are required to act in the interest of scheme beneficiaries, and working with sponsoring employers, will be responsible for decisions on the release of surplus. Together they will agree how members can benefit from any release of surplus, which could include discretionary benefit increases.

The Pensions Regulator already expects that trustees be aware of members who would benefit from any decision to award a discretionary increase and whether the scheme has a history of making such awards.

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps she is taking to help increase returns on investments from pension schemes for people in (a) Beckenham and Penge constituency and (b) other areas.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The first part of the landmark Pensions Review has concluded with the publication of the Final Report of the Pensions Investment Review on 29 May 2025.

The ambitious reforms outlined in the Final Report will drive scale and consolidation in both the multi-employer defined contribution pensions market and the Local Government Pension Scheme in England and Wales. They will unlock billions of pounds in investment for productive assets, improve efficiency, and deliver better returns for savers. Estimates suggest the measures could increase a Defined Contribution pot at retirement by £5,900 for an average earner who saves over their career.

To deliver these reforms, the Government has introduced the Pension Schemes Bill, providing the necessary legislative framework to implement these reforms, alongside wider pension reforms that are focused on improving returns for pension savers. The Bill received its first reading on 5 June 2025.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she is taking to increase transparency in the private pension sector.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Government is developing pensions dashboards which will allow people to view their pensions picture, including State Pension, securely and in one place online.

Relevant occupational, personal and stakeholder pension schemes are legally required to connect to pensions dashboards and provide pensions information upon request. This will help people to reconnect with their pension pots and better plan for retirement.

The Value for Money measures in the Pension Schemes Bill will also drive transparency across the Defined Contributions pensions sector by requiring schemes to provide standardised metrics across three core pillars of value: costs and charges; investments; and quality of service. DWP are working closely with the Financial Conduct Authority and The Pensions Regulator to ensure we design a framework and regulatory regime that increases comparability, transparency and competition across DC pension schemes, delivering better outcomes for pension savers.

Question to the Ministry of Housing, Communities and Local Government:

To ask the Secretary of State for Housing, Communities and Local Government, under what circumstances she would direct Local Government Pension Funds to a specific asset pool.

Answered by Jim McMahon

The government’s firm preference is for pool membership to be determined on a voluntary basis at a local level. In the Pension Schemes Bill, the government has made provision for a power to protect the Local Government Pension Scheme over the long term. The power could be used to direct an administering authority to participate in a specific pool in the event that an authority is left without a pool to participate in or that a pool’s governance intractably breaks down. The government would intend only to use this power as a backstop in these circumstances.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she plans to introduce safeguards for pensions against future (a) sale and (b) transfer of pension funds to (i) insurance companies and (ii) other entities.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

Insurance buyout is a long-established way of ensuring members get the full value of their promised defined benefit (DB) pensions from an insurer, backed by a 100 per cent compensation from the Financial Services Compensation Scheme. This is widely regarded as a positive outcome for scheme beneficiaries.

The Pension Schemes Bill 2025 introduces a regulatory framework for “superfunds”, which can consolidate closed DB schemes where buyout is unaffordable. Member security is at the heart of the new regime, which has rigorous safeguards and robust funding requirements. Superfunds will also continue to be overseen by the Pensions Regulator and underpinned by the Pensions Protection Fund.

Trustees must be satisfied that transferring the liabilities of the scheme to an insurer, or to a superfund, is in the best interests of the members before any transfer can take place.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what steps she is taking to improve the safety of pensions.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

On State Pensions, we have made a commitment to the Triple Lock for the entirety of this Parliament which will mean the annual spend on people’s State Pensions is forecast to rise by around £31 billion. These rises are only possible because of the tough decisions made in the autumn statement 2024 to keep the public finances on a sustainable footing .

Over 12 million pensioners will benefit (over the course of this parliament) with the full yearly rate of the new State Pension is forecast to increase by around £1,900.

The Pension Schemes Bill, introduced in Parliament on 5 June, will legislate to transform the £2 trillion workplace pensions landscape – with a smaller number of bigger, better governed, better value pension providers investing in a wider range of productive assets, ultimately improving outcomes for savers and our economy. The Bill will also legislate for wider changes, from putting in place a value for money regime for Defined Contribution pensions to the introduction of flexibilities for trustees of well-funded Defined Benefit pension schemes to release surplus back to employers where it is safe to do so, enabling benefits for scheme members.

A bedrock of our reforms is the security of members’ benefits and protection of their best interests. The reforms to the existing regime will continue to maintain member protection, with appropriate and adequate safeguards in place underpinned by the role of regulators.

This government will work closely with the Pension Protection Fund as the administrator of the Fraud Compensation Fund to ensure that the fraud compensation system is effective and that schemes which have experienced of pension fraud receive fair and timely compensation.

Question to the HM Treasury:

To ask His Majesty's Government what steps they are taking to help increase the return on investment from pension savings.

Answered by Lord Livermore - Financial Secretary (HM Treasury)

The first part of the landmark Pensions Review has concluded with the publication of the Final Report of the Pensions Investment Review on 29 May 2025.

The ambitious reforms outlined in the Final Report will drive scale and consolidation in both the multi-employer defined contribution pensions market and the Local Government Pension Scheme in England and Wales. They will unlock billions of pounds in investment for productive assets, improve efficiency, and deliver better returns for savers. Estimates suggest the measures could increase a Defined Contribution pot at retirement by £5,900 for an average earner who saves over their career.

To deliver these reforms, the Government has introduced the Pension Schemes Bill, providing the necessary legislative framework to implement these reforms, alongside wider pension reforms. The Bill received its first reading on 5 June 2025.

These measures will support the new more ambitious industry-led voluntary Mansion House Accord, announced on 13 May 2025. The Accord is a commitment from 17 of the UK’s largest defined contribution pension schemes to invest 10% of their default funds in private assets, with half of that earmarked for the UK, by 2030. This will unlock more productive investment and help support the diversification of savers’ pensions assets.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether the Pension Schemes Bill will be introduced before the summer recess 2025.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

The Pension Schemes Bill was introduced on Thursday 5 June 2025.

Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, whether she has made an assessment of the potential merits of introducing a mandatory Code of Ethical Practice for pre-1997 members of pension schemes, that promotes (a) transparency, (b) fairness and (c) accountability in managing discretionary pension increases.

Answered by Torsten Bell - Parliamentary Secretary (HM Treasury)

It is important that trustees make transparent and fast decisions about discretionary indexation. Defined Benefit Schemes are regulated by The Pensions Regulator (TPR) which has set out that trustees should consider the situation of those members who would benefit from a discretionary increase and whether the scheme has a history of making such awards.

Most schemes do pay some pre-1997 indexation, because of scheme rules or as a discretionary benefit. Analysis published last year by the Pensions Regulator shows that as of March 2023, only 17 per cent of members of private sector defined benefit pension schemes do not receive any pre-1997 indexation on benefits. This information can be found at: https://www.thepensionsregulator.gov.uk/en/document-library/research-and-analysis/data-requests#f3a5fe60511a445f91112bd7dd8a64ae

The Government’s upcoming pension reforms on the use of surpluses in defined benefit schemes will make it easier for individual schemes to make decisions that improve outcomes for both sponsoring employers and members, which could include discretionary benefit increases.

These changes will be taken forward through the Pension Schemes Bill. TPR will be producing further guidance on surplus sharing once the legislation is in place.

Found: The government introduced the Pension Schemes Bill 2024–25 in the House of Commons on 5 June 2025.

Found: Pension Schemes Bill 2024-25

Found: The government introduced the Pension Schemes Bill 2024–25 in the House of Commons on 5 June 2025.

Found: The ‘Fit for the future’ consultation outcome lists these pools.178 The Pension Schemes Bill would

Found: requirement will be placed on the local government pension scheme funds and pools via the Pension Schemes Bill

Found: requirement will be placed on the local government pension scheme funds and pools via the Pension Schemes Bill

Women and Work APPG
Wednesday 11th June 2025

Found: He stated that the Pension Schemes Bill allows this dashboard to be established, which will help people

Investment Fraud and Fairer Financial Services APPG
Wednesday 11th June 2025

Found: They were included in the October 2019 Pension Schemes Bill and so might now see the light of day.

Found: economy through investments or top up pension pots This was made possible by the Government’s Pension Schemes Bill

Found: The Pension Schemes Bill and the creation of pension megafunds mean an average earner could get a £29,000

Found: Last year at Mansion House, I set out an overhaul of our pensions system… …and the Pension Schemes Bill

Found: Pension Schemes Bill could boost returns to pension saving by thousands of pounds Changes will also

Found: Today we are introducing the Pension Schemes Bill to Parliament.

Found: Ms Evans’s appointment comes as the Government’s Pension Schemes Bill continues its passage through Parliament

Found: 20 million workers set to benefit from new Pension Schemes Bill

Found: These reforms have been set out in the Pension Schemes Bill.

Found: pathways for accessing Defined Contribution pension The government is legislating in the Pension Schemes Bill

Found: pathways for accessing Defined Contribution pensions The government is legislating in the Pension Schemes Bill

Found: For example, the findings have fed into Impact Assessments for the Pension Schemes Bill and will be of

Found: report was commissioned to inform a broad programme of analysis and policy work following the Pension Schemes Bill

Found: These reforms are being implemented through the Pension Schemes Bill.5 Position ourselves for the future

Found: The Government has introduced the Pension Schemes Bill to unlock institutional investment and consolidate

Found: aking forward recommendations from the Pension Investment Review’s final report, via the Pension Schemes Bill

Found: ensure savers have greater security in retirement and, as part of this, we are introducing a Pension Schemes Bill

Found: ensure savers have greater security in retirement and, as part of this, we are introducing a Pension Schemes Bill

Found: Today we are introducing the Pension Schemes Bill to Parliament.

Found: Workplace pensions: a roadmap PDF, 331 KB, 20 pages Details The Pension Schemes Bill

Found: We worked closely with government officials on the Pension Schemes Bill, contributing to provisions

Found: We worked closely with government ofcials on the Pension Schemes Bill, contributing to provisions on

Found: We worked closely with government officials on the Pension Schemes Bill, contributing to provisions

Found: ensure better outcomes for savers and support the sustainability of the LGPS, as set out in the Pension Schemes Bill

Found: consultation on options for Defined Benefit (DB) schemes and the subsequent publication of the Pension Schemes Bill

Found: Pension Schemes Bill IA: RPC Opinion (green-rated)

Found: Pension Schemes Bill IA: RPC Opinion (green-rated)

Found: Specific milestones will also be delivered through the Pension Schemes Bill and wider reforms.

Found: Annex 3 LEGISLATIVE CONSENT MEMORANDUM The Pension Schemes Bill 1.

Found: The Pension Schemes Bill (“the Bill”) was introduced in the House of Commons on 5 June 2025.