Compensation (London Capital & Finance plc and Fraud Compensation Fund) Bill (First sitting)

(Limited Text - Ministerial Extracts only)

Committee stage
Tuesday 15th June 2021 Public Bill Committees

[The Chair]

Ms Howard, you responded to Mr Thomas’s first question by saying that you would write to us. May I point out to you that you must write your response to both questions today? Minister Opperman, do you have any questions?

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

You are very kind, Chair, but I do not.

[The Chair]

Very good. Minister Glen?

[The Economic Secretary to the Treasury (John Glen)]

No, I do not, thank you.

[The Chair]

That brings us to the end of this session. I thank all the witnesses for giving evidence.

Examination of Witness

David Taylor gave evidence.

--- Later in debate ---

[The Chair]

No problem. I now come to Minister Opperman.

[Guy Opperman]

Q I will ask a few limited questions of Mr Taylor. When the Pension Protection Fund and the Fraud Compensation Fund were created in 2004, am I right to say that the levy was an industry-funded system that was not envisaged to include these types of cases?

David Taylor: That is right. The types of cases that we were dealing with in the early years of the Fraud Compensation Fund were different. They did not involve schemes that had been set up specifically for the purpose of pensions liberation. They were more to do with, for example, employers who had failed to pay over into a scheme the moneys that they had deducted from their employers or conceptually straightforward fraud by which money was taken out of existing defined contribution or DB pension schemes.

[Guy Opperman]

Q Can we clarify the difference between what was called pension freedom and pension liberation? You have been aked two questions about pension freedoms. I think I am right—please correct me if I am wrong—in saying that the vast majority of schemes that are affected by the claims being made predate pension freedoms in 2015. Is that correct or wrong?

David Taylor: That is correct.

[Guy Opperman]

Q Secondly, the levy was created. Am I right to say that it has had a series of amendments between 2004 and 2021 and in the future consultation through which Governments of the day address particular issues and either raise or adjust the levy as it goes forward?

David Taylor: That is right. There have been a couple of changes over the years.

[Guy Opperman]

Q Your expectation, as I understand it, is that there will be a consultation on the levy in the autumn to assist in the payment of the disparity in the funding of the FCF?

David Taylor: That is right, yes.

[Guy Opperman]

Q Finally, am I right that the Pension Protection Fund produces an annual report?

David Taylor: Yes, we do. We are just about to publish our report for the year finishing 31 March 2021. It is quite comprehensive and is audited by the National Audit Office.

[Guy Opperman]

Q This relates to amendment 6, which will be moved later, but does the annual report include an assessment of the operation of the Fraud Compensation Fund?

David Taylor: It does, and I anticipate that there will be far more activity on the Fraud Compensation Fund in the year to come than there has been in previous years.

[The Chair]

If there are no further questions from Members, I shall thank the witness for his evidence. We now move on to the next panel.

We seem to be struggling to get all the witnesses on Zoom, so I will suspend the sitting until 10.45 am.

--- Later in debate ---

[The Chair]

Thank you. Minister Opperman, we have four minutes.

[Guy Opperman]

Nothing from me, but thank you very much, Ms Ghani.

[The Chair]

Minister Glen?

[John Glen]

No, Ms Ghani.

[The Chair]

Okay, that brings us to the end of this session. If there are no further questions from Members, I thank the witnesses for their evidence. Because we have closed a little sooner than expected, I will invite the Government Whip to propose the Adjournment. Please will Committee members leave the room promptly by the door marked “Exit”, while observing social distancing? The Committee will meet again today at 2 pm in Committee Room 10 to begin line-by-line consideration of the Bill.

Ordered, That further consideration be now adjourned. —(Alan Mak.)