Pension Schemes: Ministerial Powers

Lord Davies of Brixton Excerpts

Wednesday 11th March 2026 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, the Government have not set out a timeline for using the power precisely because we have made it clear that we do not wish to use it, and do not expect to use it. The timeline for Mansion House is clear: the power expires if it is not used, and if any requirements are in place, they are capped at that level and cannot be raised thereafter. This will happen only if it becomes clear that the Mansion House Accord is not able to be delivered on. At that point the Government would consult, they would produce draft regulations, and the process would then happen. As I have made clear, since the only aim is to backstop the Mansion House Accord, the evidence should come from what companies are doing in that accord.

[Lord Davies of Brixton (Lab)]

My Lords, like my noble friend I am looking forward to discussing these issues at length on Report of the Pension Schemes Bill. Does the Minister agree with me that the real trick is not so much directing the investment as finding the suitable opportunities in which to invest? Her honourable friend the Pensions Minister has talked extensively about the failure of investment in reservoirs over the last 20 or 30 years. There is a failure there that has to be addressed.

[Baroness Sherlock (Lab)]

My noble friend is quite right; we have had many opportunities. It has been a joy to discuss the Pension Schemes Bill over many weeks, and that joy is set to extend for some weeks to come. My noble friend raises an important point: if the Government want to make sure that people are investing in good projects, they need to make sure that there are good projects to invest in. We also need to make sure that there are vehicles for doing that. The Government have done a great deal already, with the British Business Bank, looking at what has happened with Sterling 20 and at making sure that we work with industry to create the opportunities. But there is clearly money to be made here: if international pension funds are coming to our country and buying up chunks of our infrastructure and our private equity, we should be making sure that these are open to our own pension funds to make money on them. Nobody is making them do it; they are doing it because it is the right thing to do. We need to make sure, therefore, that we enable and encourage it, and the industry has taken the first steps itself. We are simply making sure that the backstop is there to make clear that this is the direction of travel.