Pension Schemes (Conversion of Guaranteed Minimum Pensions) Bill

(Limited Text - Ministerial Extracts only)

3rd reading
Friday 25th February 2022 Commons Chamber

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

The Government propose to transform United Kingdom pensions. We are making them safer, better and greener and the Bill is a further way forward. I am grateful to the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier) for introducing the Bill and for the support of the official Opposition and other political parties.

Let me briefly address the three points raised by the hon. Member for Westminster North (Ms Buck) on behalf of Her Majesty’s Opposition. I assure her that there will be full consultation on the legislation. There will also be broad communication, but I will write to her on that point and place a copy of the letter in the Commons Library and the House of Lords Library so that all peers and Members can see it.

In respect of gender inequality, the hon. Lady will be aware that successive Governments have concluded that the way ahead on that is automatic enrolment—that is the greatest change. There is no doubt that automatic enrolment has transformed saving in this country. For example, in terms of workplace pensions, women were at less than 40% in 2012 and are now at more than 80%, and young people aged between 22 and 29 were at less than 40% and are now at 80%.

[Mr Richard Holden (North West Durham) (Con)]

I agree with the Minister and welcome the Bill from the hon. Member for Rutherglen and Hamilton West (Margaret Ferrier). It is a great Bill and part of the reforms to pensions that the Government are making. As the Minister mentioned auto-enrolment, can he enlighten me on the Government’s position on my Bill, which is scheduled for later today, on expanding auto-enrolment to under-22s and part-time workers, particularly women as he just mentioned?

[Guy Opperman]

I will deal with that point, because it is relevant to this Bill and to the consideration of the House later. As my hon. Friend will understand, we are in the latter part of this parliamentary Session. It is the end of February and the Queen’s Speech will come, in all probability—obviously I cannot commit, but it is usually—on the second Wednesday in May, so the House has a relatively limited period of time.

The hon. Lady’s Bill had its Second Reading in November. It required a Committee stage in the House of Commons, then it had to come back for Report and Third Reading. It has not even gone to the other place for consideration. It will only just get under the line, although I am sure that the other place will be keen to accept it. The reality is that there is no real way for my hon. Friend’s Bill to get through this House and the House of Lords in the time allowed, and that is the requirement of private Members’ Bills of the nature of his and all others, to be fair.

I can confirm, however, that the Government remain committed to the 2017 automatic enrolment review. It remains the case that we will, in the fullness of time, bring forward or support legislation to take the matter forward. My hon. Friend will have to bear with me. He and I have had ample conversations. I am so pleased that he is my neighbour—a great improvement on the previous one. He is a doughty campaigner for his constituents and he is right to make this particular case.

I thank my hon. Friends the Members for East Surrey (Claire Coutinho), for Broxtowe (Darren Henry), for Hastings and Rye (Sally-Ann Hart), for Darlington (Peter Gibson) and for Meriden (Saqib Bhatti) who all supported the Bill and spoke extremely well and eloquently about these matters. I will not repeat my entire Second Reading speech, which lasted for, I think, nearly an hour, and of which I know all hon. Members enjoyed every word.

The greatest hits of pensions are often underrated in my experience, but the points that I made then should be repeated as if I were to speak for the next hour. We are correcting a simplification that was brought in by the last days of Mr Callaghan’s Labour Government in 1978. It is an utterly vital piece of legislation that addresses everything from survivor benefits to reforms in relation to HMRC and the need to get proper equalisation. To be utterly clear, all parties will benefit from this and there is no loser by reason of the Bill.

It is absolutely to the credit of the hon. Member for Rutherglen and Hamilton West that she has successfully brought the Bill forward on a cross-party basis and navigated its passage. She should be very proud of her work. I am delighted to restate that the Government support the Bill. We continue to support it in this House and will support it in the House of Lords. I wish it every success as it travels on to another place.