Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assurances and risk warnings were provided to members of the Atomic Energy Authority public sector pension scheme in 1996, before they transferred their accrued public sector pension benefits into the Atomic Energy Authority Technology private sector scheme.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Department for Work and Pensions does not hold information on how much funding was transferred to the Atomic Energy Authority Technology private sector pension scheme in 1996 and does not hold all the communications that were provided to members of the Atomic Energy Authority Technology pension scheme in 1996.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how much money was transferred to the Atomic Energy Authority Technology pension scheme in 1996, when staff were transferred from their Atomic Energy Authority public sector pension scheme into the Atomic Energy Authority Technology scheme.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Department for Work and Pensions does not hold information on how much funding was transferred to the Atomic Energy Authority Technology private sector pension scheme in 1996 and does not hold all the communications that were provided to members of the Atomic Energy Authority Technology pension scheme in 1996.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government whether a company that has entered the Pension Protection Fund can be extracted from the Pension Protection Fund, on payment of sufficient funds to cover the future Pension Protection Fund liabilities, if a new sponsoring employer is willing to underwrite the scheme and pay benefits above Pension Protection Fund level.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Pension Protection Fund (PPF) does not permit transfers out because the PPF does not work as a segregated fund, where individual schemes contributions are ringfenced.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government how much money they retained from the sale of part of the Atomic Energy Authority to a private sector operator in 1996.
Answered by Lord Vallance of Balham - Minister of State (Department for Energy Security and Net Zero)
A National Audit Office (NAO) report published on 20th March 1998 on the sale of AEA Technology sets out that then Department of Trade and Industry (DTI) sold AEA Technology (formerly part of the UK Atomic Energy Authority) in 1996 for £224 million. In addition, DTI received a dividend of £3.75 million giving total gross proceeds of £227.75 million.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what plans they have to extend the current period of six months after the death of the individual within which inheritance tax must be paid and after which interest starts to accrue.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions.
Inheritance tax should be paid within 6 months from the end of the month after the date of death, or late payment interest will begin to accrue on the outstanding tax. This is a longstanding requirement that ensures the tax is collected quickly and efficiently. However, the Government recognises the difficulties personal representatives may face in paying the inheritance tax due and offers several payment options to help. This includes the direct payment scheme, which allows personal representatives to instruct banks and building societies to transfer funds from the deceased’s bank or building accounts before probate is granted.
The Government also announced changes at the Budget in November 2025 which mitigate the risks to personal representatives by providing them with the ability to direct pension scheme administrators to withhold taxable benefits for up to 15 months from the date of death and to direct them to make payments of inheritance tax directly to HMRC. The changes also protect personal representatives from risk that lost pension pots emerge later by discharging them from liability where they have received clearance from HMRC. Furthermore, to ensure that the process of calculating, reporting and paying inheritance tax does not take longer than necessary, the Government will introduce regulations setting out deadlines for the parties involved to exchange information.
These changes are consistent with the process which already exists for administering estates and paying any inheritance tax due. Personal representatives are already responsible for administering the rest of the estate, including non-discretionary pension schemes which are already in scope of inheritance tax. The Government will publish further guidance and tools to support personal representatives in readiness for these changes being implemented in 2027.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what steps they are taking to ease the administrative burden on personal representatives responsible for assessing and paying inheritance tax on unused pensions due within six months of death.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions.
Inheritance tax should be paid within 6 months from the end of the month after the date of death, or late payment interest will begin to accrue on the outstanding tax. This is a longstanding requirement that ensures the tax is collected quickly and efficiently. However, the Government recognises the difficulties personal representatives may face in paying the inheritance tax due and offers several payment options to help. This includes the direct payment scheme, which allows personal representatives to instruct banks and building societies to transfer funds from the deceased’s bank or building accounts before probate is granted.
The Government also announced changes at the Budget in November 2025 which mitigate the risks to personal representatives by providing them with the ability to direct pension scheme administrators to withhold taxable benefits for up to 15 months from the date of death and to direct them to make payments of inheritance tax directly to HMRC. The changes also protect personal representatives from risk that lost pension pots emerge later by discharging them from liability where they have received clearance from HMRC. Furthermore, to ensure that the process of calculating, reporting and paying inheritance tax does not take longer than necessary, the Government will introduce regulations setting out deadlines for the parties involved to exchange information.
These changes are consistent with the process which already exists for administering estates and paying any inheritance tax due. Personal representatives are already responsible for administering the rest of the estate, including non-discretionary pension schemes which are already in scope of inheritance tax. The Government will publish further guidance and tools to support personal representatives in readiness for these changes being implemented in 2027.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what assessment they have made of the increasing number of Long Term Asset Funds and the risks they pose to investors, including forced sales or the inability to redeem investments, due to their holdings of illiquid investments.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The Government wants to make sure that those who have the ability to put away money for the long-term can do so. The Long-Term Asset Fund (LTAF) provides investors with the opportunity to invest in long-term alternative assets, such as venture capital, private equity, real estate and infrastructure, that can offer higher returns in exchange for limited liquidity.
The Financial Conduct Authority have designed robust governance requirements for the LTAF, so investors who understand the risks of investing in long‑term less liquid assets are able to invest with confidence. Where a firm markets an LTAF to a retail investor, the firm must provide appropriate risk warnings and conduct an appropriateness assessment.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what estimate they have made of the cost of compensation for the loss of inflation protection for benefits accrued before 1997 for past members of the AEA Technology pension scheme who were transferred out of the public sector scheme in 1996.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
We recognise the challenges members of the AEA Technology pension scheme face and are directly tackling the point you raise about the loss of inflation protection. The Chancellor announced at the Budget that this Government will introduce annual increases on compensation payments from the Pension Protection Fund and Financial Assistance Scheme that relate to pensions built up before 6 April 1997. These will be Consumer Prices Index-linked (capped at 2.5%) and apply prospectively (i.e. to payments going forward) for members whose former schemes provided for these increases.
I am pleased to confirm that past members of the AEA Technology pension scheme with pre-97 accrual will benefit from this measure.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what analysis they have carried out to support the exclusion of UK listed investment funds as qualifying assets under the Pension Schemes Bill.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The scope of the qualifying assets provisions in the Bill’s asset allocation reserve powers are designed to reflect the scope of the Mansion House Accord, a voluntary expression of intent by seventeen major pension providers to invest 10% of their main defined contribution default funds in private markets, including 5% in UK private markets.
This reflects the Government’s intention that the reserve powers should not be open-ended but should be capable of serving as a limited backstop to the commitments made in the Mansion House Accord.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what discussions they have had with local authorities regarding the use of pension contribution holidays as their schemes have significant surpluses.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
Employer contribution rates are set as part of the triennial valuation process which is undertaken by all Administering Authorities in the Local Government Pension Scheme. The 2025 valuation, which will set contribution rates for 2026-27 onwards, is in progress and will conclude on 31 March.
The setting of employer contribution rates is locally led and managed. Administering authorities consult employers, including local authorities, to ensure that rates are sustainable for both the fund and employers. The Department does not set the rates or take part in these consultations.