Pension Schemes Bill [HL]

Debate between Lord McNicol of West Kilbride and Earl Howe

Report stage & Report stage (Hansard) & Report stage (Hansard): House of Lords
Tuesday 30th June 2020 Lords Chamber

[Earl Howe]

My Lords, there was general agreement in Committee that pension scheme members should have access to a dashboard service that is publicly owned and free of potential commercial imperatives. As we set out in Committee, the Government wholeheartedly agree that such a dashboard should be available to all users from day one, alongside dashboards offered by other organisations. We explained that the single financial guidance body, now known as the Money and Pensions Service, can provide a dashboard under its existing statutory functions, but I accept that the Government could provide further reassurance in legislation.

The government amendments reflect this commitment by placing a duty on the Money and Pensions Service to provide a pensions dashboard. The dashboard must display information from private and occupational pension schemes. These amendments also enable the inclusion of state pension information.

In addition, these amendments repurpose the provisions that were in new Section 4A(1)(b), as inserted by this clause, as new Section 4A(1A). The original purpose of these provisions, however, is unchanged. They make it clear that the Money and Pensions Service can carry out functions relating to the provision of qualifying pensions dashboard services by others as part of its pensions guidance function, including providing state pension information. This could, for example, include publishing data standards with which providers must comply.

The amendments also make minor consequential changes to Clauses 119 and 121, as well as to Schedule 9, which relates to Northern Ireland. The duty to provide a pensions dashboard will apply only once the necessary supporting technical architecture is in place and pension schemes are required to provide information to their members via dashboards. I therefore very much hope that the government amendments will be accepted when they are moved.

I will now respond to the amendments tabled by the noble Baronesses, Lady Sherlock and Lady Drake, on the Money and Pensions Service dashboard being the sole dashboard for at least 12 months. The Government have been clear throughout that offering consumers a choice of dashboards is the best way to increase engagement. Our position on this has not changed. Allowing consumers to access their pensions information in the way that they want to is key to putting people in control of their savings.

Having a period of exclusivity for the Money and Pensions Service dashboard, as is being suggested, would seem to achieve relatively little, other than to restrict people’s access to their own information through a route of their choosing. However, what we will not allow to happen is for any commercial dashboard to be launched before that of the Money and Pensions Service. I would like to be clear that the Money and Pensions Service dashboard will be available from day one, alongside dashboards offered by other organisations.

I invite the noble Baroness to note that the Money and Pensions Service has an existing legislative requirement, in the Financial Guidance and Claims Act 2018, to report to the Secretary of State annually on the achievement of its objectives and functions. This report is also laid before Parliament and will provide detailed information about the development, delivery and operation of dashboards.

The noble Baroness, Lady Drake, asked me about the liability model and whether we can guarantee that it will be ready before commercial dashboards can be used. The pensions dashboard programme will develop a robust liability model to ensure that there are clear roles and responsibilities in the event of a breach. This will be in place before the public launch of dashboards.

I hope I have given reassurance that there will be a publicly owned dashboard and that there is a range of reporting requirements that allows sufficient oversight of progress, not least in making sure that the functionality which will underpin all dashboards can be relied upon. I have to say that some noble Lords rather over-egged the argument of functionality risk.

The long and the short of it is that we remain strongly of the belief that multiple dashboards are the best way to ensure that everyone can access their pensions information in the way that they desire. Therefore, I respectfully ask the noble Baroness, Lady Sherlock, not to move her amendment when we come to it.

My noble friend Lord Young has tabled three amendments, covering the Money and Pensions Service dashboard, a date for the introduction of that dashboard, and the verification of identity. I am glad he agrees that the government amendment fully meets his desire for the Money and Pensions Service to provide a dashboard. On providing a timetable for delivery, we are all keen to see dashboards available as soon as possible. However, it is essential to get the design of the service right, to ensure that it provides accurate information and is secure and consumer focused.

On that point, I can assure my noble friend that the pensions dashboard programme put in place by the Money and Pensions Service is taking the necessary steps to deliver the dashboard architecture. In April, it published two papers relating to data. Having deferred consultation on these papers because of the impact of Covid-19, the programme will now run a call for input throughout July and August. It is also bringing together a data working group to finalise a set of data standards and requirements by the end of the year.

The programme is also making progress on the supporting dashboard infrastructure. On 22 June, it started a six-week market engagement exercise with potential suppliers of the supporting dashboard architecture for the pensions finder service and the governance register. This will help the programme to determine the most appropriate route to market in preparation for a formal procurement process, anticipated to start in autumn this year.

Finalising the data standards and the procurement route is key to informing the timetable for delivery. However, it is essential that we do not force upon the Money and Pensions Service an arbitrary timetable set by legislation. I hope that, on reflection, my noble friend will come round to that view.

I understand that my noble friend wants to maintain momentum, and I agree with that. Alongside the annual report by the Money and Pensions Service, which I mentioned, the pensions dashboard programme has committed to publishing a progress update every six months, for the length of the programme. It will also set out a detailed timetable for delivery by the end of the year.

My noble friend also brought us back to the issue of digital identity and how a user of a dashboard is verified. In the March 2020 Budget, the Government reiterated their commitment to the creation of a ubiquitous digital identity market. To achieve this, they created the digital identity unit, which is a collaboration between the Department for Digital, Culture, Media and Sport and the Cabinet Office.

As my noble friend rightly said, an identity verification service is an essential component of the dashboards infrastructure. It will provide the verification required to assure pension schemes—the data providers—that they are returning data to the correct user and to nobody else. The verification service must also meet the needs of users, enabling them to verify their identity without undue difficulty.

On a point raised by my noble friend about funding, I say that the pensions dashboard service, including ID verification, will be free at the point of use for individuals. The identify verification service for dashboards will be managed centrally as part of the supporting infrastructure, as I indicated. Funding options will be carefully considered as part of any proposed solution on identity.

As outlined in the progress update report published in April, the pensions dashboard programme will need to source a functioning, workable identity verification service. It is working with the digital identity unit and the supplier market to explore potential solutions for dashboards. These solutions will be based on managing and mitigating the type of risks associated with dashboards. Developing their requirements will enable the pensions dashboard programme to assess the suitability of available products against robust success criteria.

I say to my noble friend that we understand the need for progress on the delivery of dashboards; we recognise the need for a safe and secure method for verifying someone’s identity, and we understand how important this will be for the success of the dashboard concept. While I can go no further than that, I hope that I have said enough to convince him that his concerns are squarely on the radar, and that he will accordingly feel able to withdraw his Amendment 53.

[The Deputy Speaker]

I have received no requests for noble Lords to speak, so I call the noble Lord, Lord Young.

Hong Kong Protests

Debate between Lord McNicol of West Kilbride and Earl Howe

Tuesday 1st October 2019 Lords Chamber

[Lord McNicol of West Kilbride (Lab)]

My Lords, I beg leave to ask a Question of which I have given private notice.

[Earl Howe (Con)]

My Lords, the Government remain seriously concerned about the situation in Hong Kong, and today’s shooting of a protester is a deeply worrying development. The Government are clear that there is no excuse for violence and we will continue to condemn it. This incident also underlines why a constructive dialogue that addresses the legitimate concerns of the Hong Kong people is so important. What is required now is calm from both protesters and the Hong Kong authorities.

[Lord McNicol of West Kilbride]

I thank the noble Earl for his Answer. After four months of protest, today’s use of live rounds against protesters in Hong Kong marks a worrying escalation. I am sure that all noble Lords will share my concern at the spiralling levels of violence on all sides, which appear to be increasing on a near daily basis. Can the noble Earl say whether the Foreign Secretary has made any representations to the Hong Kong or Chinese Governments since the reports emerged earlier today and, if so, can he share any of their responses? Finally, in the light of today’s events, can he confirm what further steps, if any, will be taken to support British national overseas passport holders in Hong Kong?

[Earl Howe]

My Lords, as I said earlier, I share the noble Lord’s deep concern about the situation. However, we must be clear that the situation is fluid. We do not yet know the precise circumstances of this incident. No formal statement from the Hong Kong police has yet been issued, and it goes without saying that the situation is fast moving. Having said that, I can assure the noble Lord that we are in regular contact with the Governments of Hong Kong and China. My right honourable friend the Foreign Secretary spoke to the Chief Executive of Hong Kong on 9 August. He was due to have a meeting with Foreign Affairs Minister Wang Yi at the United Nations last week. He was called back for reasons that I do not need to explain, so the meeting did not occur, but he expects to speak to him in the coming days.

As far as the British nationals of Hong Kong origin are concerned, we are clear that the best solution for Hong Kong and the British national overseas passport holders who live there is full respect for the rights and freedoms set out in the Sino-British Joint Declaration. That will be the basis of any actions going forward.

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[Earl Howe]

My Lords, we lose no opportunity to express our views to the Chinese authorities on matters relating to human rights. Of course, those human rights are embedded in the Joint Declaration. However, I will have to write to the noble Earl about the extent to which regular talks on this subject occur.

[Lord McNicol of West Kilbride]

Perhaps I may come back on one of the points made by the Minister in his response to my supplementary question. He said that the Foreign Secretary last spoke to Carrie Lam on 9 August. That is getting close to two months ago now, which, with so many fast-moving developments, seems a rather long time. I wish to encourage Her Majesty’s Government to have more dialogue and conversations.

[Earl Howe]

My Lords, I am happy to confirm that I will pass that recommendation on to the appropriate quarter.

Parliamentary Buildings (Restoration and Renewal) Bill

Debate between Lord McNicol of West Kilbride and Earl Howe

Committee: 1st sitting (Hansard - continued): House of Lords
Monday 22nd July 2019 Lords Chamber

[Lord McNicol of West Kilbride (Lab)]

My Lords, I support the amendments of my noble friends Lord Blunkett and Lady Smith and that of the noble Lord, Lord Bethall.

A number of themes have emerged from the discussions over the past 50 minutes. The amendments were eloquently outlined by my noble friend Lord Blunkett and that set the tone for the rest of the debate on group five. There has not been a voice against the amendments and I would not like to be in the noble Earl’s place in trying to respond across the House.

The noble Lord, Lord Bethell, touched on the rebuilding of civic trust. He is absolutely correct. There is a misconception about the restoration and renewal project among those outside who do not know much about it that it is about us improving the place for the benefit of parliamentarians and spending large amounts of money in doing so. We all know that it is actually about maintaining the heart of our democracy and the benefits it brings as a centre of education and heritage.

A number of noble Lords spoke about education. I have been in the House only for a year and one thing I went straight into was working with the education and schools engagement team. For those who have not had that opportunity, I highly recommend it. The noble Lord, Lord Cormack, talked about reaching out to all secondary schools, but some of the most engaging conversations I have had have been with primary school children. My noble friend Lord Adonis is correct that not enough schools are coming into the House, and we should encourage that more. We should use this as an opportunity to reach out further; the sponsor body should have the ability to do that and should hold it at the forefront of its mind when thinking about what the Palace should look like once we go through this process. It should think about engagement with education and schools. That would be to all of our benefit.

There are other organisations across civil society, including the trade unions. To go right back, the Joint Committee’s recommendation was that the sponsor body should,

“promote public engagement and public understanding of Parliament”.

When this was in its infancy and being pulled together, there was talk of a public understanding of Parliament.

We all know what happens with large infrastructure projects—and this will be a large infrastructure project. Too often, sometimes for unforeseen reasons, they overrun in time and expenditure. Parliament will not have the time to do the work on this—there is a lot of other work that Parliament needs to do—so putting it in the Bill and adding it as a responsibility for the sponsor body will help us to deal with some of those issues. If we do not get out there and tell the story of restoration and renewal, we could see many of the criticisms and problems that have arisen with other large infrastructure projects.

To touch on another amendment, we should ensure that businesses across the UK benefit from the economic advantages that the project will bring. Some of the contracts should go out across the UK, and that should remain at the forefront of the sponsor body’s mind.

If my noble friend Lord Adonis gets his wish and we end up with a coffee shop in the Royal Gallery, I am more than happy to help out as the first barista. I support the amendments.

[The Minister of State, Ministry of Defence (Earl Howe) (Con)]

My Lords, I am most grateful to the noble Lord, Lord Blunkett, and my noble friend Lord Bethell for tabling these amendments. As has been clearly explained, they seek to require the sponsor body to promote public understanding of and engagement with the restoration and renewal programme. The amendments would also require the sponsor body to have regard to these matters and to develop a strategy for consulting the public.

The first thing for me to say is this: the public will absolutely and undoubtedly want to understand how the restoration and renewal of the Palace is progressing and what it means for them. That is exactly why the shadow sponsor body is already engaging with the public on the restoration and renewal of the Palace of Westminster. It is doing that because one of its main strategic priorities is to:

“Open up the Houses of Parliament, improve access and encourage a wider participation in the work of Parliament”.


Those are exactly the things that noble Lords have been advocating. That priority is not just about filling the Public Gallery. It is very much about securing public buy-in to the work of Parliament, and you cannot do that without making the public aware of the biggest thing to happen to this building for 180 years: the R&R programme.

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[Lord McNicol of West Kilbride]

My Lords, Amendment 22 brings our attention to the relationship between the sponsor body and both Houses. The sponsor body must remain engaged with the wider Parliament throughout the work. The noble and learned Lord, Lord Wallace, made a number of points in this regard.

Amendments 24 and 25 seek to create within the body a new champion for education and a champion for participatory democracy, as touched on by the noble Lord, Lord Bethell. The benefits of Parliament for educational and participative democracy purposes are well established and were discussed earlier, so I have no need to go back over them. I hope that the sponsor body will agree to promote both these aspects.

Meanwhile, Amendment 28 in the name of my noble friend Lady Smith would introduce the idea of a report to ensure that the Palace is maintained beyond the works. This is an attempt to look to the future and ensure that the Estate cannot fall into its current level of disrepair. The can has been kicked down the road for far too long and work must begin as soon as it has been agreed, but there would be great benefit in reporting on how these works will preserve the long-term future. Be it in a separate account or as part of the pre-existing reporting arrangements, this issue should be given consideration.

[Earl Howe]

My Lords, I thank the noble and learned Lord, Lord Wallace of Tankerness, my noble friend Lord Bethell and the noble Lord, Lord McNicol, for these amendments, which, as they have explained, are about placing further duties on the sponsor body, namely: appointing spokespersons for that body in each House; appointing champions for particular purposes; and to underpin maintenance planning. The amendments are grouped to reflect the fact that they relate to the relationship between Parliament and the sponsor body. I am sure that we can all identify with the arguments advanced for these amendments and I will address each in turn.

The amendment in the name of the noble and learned Lord would require the sponsor body to nominate spokespeople for both Houses. The Government agree that it may well be necessary to have political figureheads on the sponsor body. However, we come back to the question of how prescriptive we should be in the Bill. The Government’s view is that it is for the sponsor body to determine the role of its parliamentary Members, whether acting as political figureheads or spokespersons, or answering Parliamentary Questions, and that we should not prescribe these things in the Bill.

Having said that, I reassure the noble and learned Lord that the chair of the shadow sponsor body will be invited to consider and agree its preferred approach to the appointment of spokespeople in the autumn, ahead of its transition to the substantive stage. I am sure they will be receptive to that idea. Apart from responding to Parliamentary Questions, subject to procedural discussions within both Houses, the possibility could also be explored of the spokespeople making Written Statements and moving resolutions to agree the outline business case required by the Bill.