Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what discussions they have had with the Financial Conduct Authority on the regulation of investment consultants for pension fund investors, including the regulation of their net zero and sustainability strategies.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The principal finding of the Competition and Markets Authority’s (CMA) 2018 Investment Consultants Market Investigation report was that the investment consultancy and fiduciary management market was insufficiently competitive, leading to adverse impacts for their customers. One of the recommendations of that report was that investment consultants should be brought into Financial Conduct Authority’s (FCA) regulation.
In the March 2019 response to the recommendations of the CMA’s final report, HM Treasury committed to consulting on the CMA’s recommendation that the FCA’s regulatory perimeter be extended to cover the activities of investment consultants. A number of other priorities, including the urgent work required to respond to the Covid-19 pandemic, meant that the work to develop this consultation has been delayed.
However, a number of other recommendations made by the CMA to address competition in this market have been taken forward, such as the Department for Work and Pensions’ legislation requiring pension scheme trustees to carry out a competitive tender for fiduciary management services.
HM Treasury works closely with the FCA and has held regular discussions with them on this matter.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government how many people aged over 60 in the UK have ISAs; and what is the (1) total, and (2) average, value of those ISAs.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
The number of people aged over 60 in the UK who have ISAs as of the end of the 2019 to 2020 tax year is 9,273,000, with a total market value of £401 billion. The average market value per individual for this group is £43,274.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether the Financial Conduct Authority has (1) collected, and (2) published, data in any of the years since 2015 showing how many members of contract-based pension schemes have fully withdrawn their pension fund, paying more than 20 per cent in tax; and if so, how many of these had no other pension provision.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
This issue is a matter for the Financial Conduct Authority (FCA), who are operationally independent from the Government.
These questions have therefore been passed to the FCA who will respond by letter. Copies of the letter will be placed in the Library of the House.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what the lower earnings limit for National Insurance will be set at for the years 2022–23; and whether any changes are proposed from July 2022.
Answered by Baroness Penn - Minister on Leave (Parliamentary Under Secretary of State)
As set out in The Social Security (Contributions) (Rates, Limits and Thresholds Amendments and National Insurance Funds Payments) Regulations 2022, the Lower Earnings Limit will be £123 per week in 2022-23. The threshold is not impacted by changes announced at Spring Statement 2022, so will remain at this level throughout the 2022-23 tax year.Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what assessment they have made of the effects their planned protection regime for minimum pension ages will have on their policies for pension simplification and consumer engagement, including (1) the implications of increased complexity for simple Annual Statements, (2) the challenges for pension forecasts to be produced by Pension Dashboards, and (3) consolidation of smaller pension pots.
Answered by Lord Agnew of Oulton
In February 2021 the government reconfirmed that normal minimum pension age (NMPA) will rise to 57 in 2028 (as announced in 2014) and published a consultation on the implementation of the increase and a proposed protection regime. That consultation received 117 responses. The government published draft legislation in July. Throughout these consultations the government has been in regular dialogue with a wide variety of stakeholders about the proposals, including the design of the protection regime and the interplay between the implementation of the Normal Minimum Pension Age and the impact on other policy initiatives. We are considering these responses and representations carefully and will publish full details of the protection regime in due course.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government what plans they have consult with industry on the practicalities of implementing the proposed protection regime for increasing the normal minimum pension age to 57 in April 2028.
Answered by Lord Agnew of Oulton
In February 2021 the government reconfirmed that normal minimum pension age (NMPA) will rise to 57 in 2028 (as announced in 2014) and published a consultation on the implementation of the increase and a proposed protection regime. That consultation received 117 responses. The government published draft legislation in July. Throughout these consultations the government has been in regular dialogue with a wide variety of stakeholders about the proposals, including the design of the protection regime and the interplay between the implementation of the Normal Minimum Pension Age and the impact on other policy initiatives. We are considering these responses and representations carefully and will publish full details of the protection regime in due course.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to their proposed introduction of a protection regime to allow pension scheme members to protect a minimum pension age of 55, how many pension accounts they expect to be opened for children before 5 April 2023 to protect a minimum pension age of 55 for their future.
Answered by Lord Agnew of Oulton
In February 2021 the government reconfirmed that normal minimum pension age (NMPA) will rise to 57 in 2028 (as announced in 2014) and published a consultation on the implementation of the increase and a proposed protection regime. That consultation received 117 responses. The government published draft legislation in July. Throughout these consultations the government has been in regular dialogue with a wide variety of stakeholders about the proposals, including the design of the protection regime and the interplay between the implementation of the Normal Minimum Pension Age and the impact on other policy initiatives. We are considering these responses and representations carefully and will publish full details of the protection regime in due course.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to their proposal to increase the normal minimum pension age from 55 to 57 in 2028, what estimate they have made of the number of people who will transfer existing pensions to new providers to take advantage of the planned protection regime that will be available up to 5 April 2023.
Answered by Lord Agnew of Oulton
In February 2021 the government reconfirmed that normal minimum pension age (NMPA) will rise to 57 in 2028 (as announced in 2014) and published a consultation on the implementation of the increase and a proposed protection regime. That consultation received 117 responses. The government published draft legislation in July. Throughout these consultations the government has been in regular dialogue with a wide variety of stakeholders about the proposals, including the design of the protection regime and the interplay between the implementation of the Normal Minimum Pension Age and the impact on other policy initiatives. We are considering these responses and representations carefully and will publish full details of the protection regime in due course.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government, further to their proposal to increase the normal minimum pension age from 55 to 57 in 2028, how many pension scheme members they estimate will benefit from the planned protection regime before 5 April 2023.
Answered by Lord Agnew of Oulton
In February 2021 the government reconfirmed that normal minimum pension age (NMPA) will rise to 57 in 2028 (as announced in 2014) and published a consultation on the implementation of the increase and a proposed protection regime. That consultation received 117 responses. The government published draft legislation in July. Throughout these consultations the government has been in regular dialogue with a wide variety of stakeholders about the proposals, including the design of the protection regime and the interplay between the implementation of the Normal Minimum Pension Age and the impact on other policy initiatives. We are considering these responses and representations carefully and will publish full details of the protection regime in due course.
Asked by: Baroness Altmann (Conservative - Life peer)
Question to the HM Treasury:
To ask Her Majesty's Government whether they will introduce savings incentives to help people pay for elderly care.
Answered by Lord Agnew of Oulton
The government is committed to both supporting individuals at all stages of life to save and delivering world-leading health and social care across the whole of the UK.
The government already provides extensive support to individuals to save for retirement and later life. Individuals are currently able to save up to £20,000 each year across the four types of Individual Savings Accounts (ISAs), which offer a range of mechanisms to save or invest tax-free. This includes the Lifetime ISA which allows savers to benefit from a 25% government bonus on up to £4,000 of savings each year and supports saving towards later life. These savings, including the government bonus, can be withdrawn from the age of 60 and may be used to pay for care.
And more broadly, for the majority of savers, pension contributions made from income during working life is tax-free. Investment growth of assets in a pension scheme is also not subject to tax and, from age 55 (or when scheme rules allow a pension to be taken), up to 25 per cent of the pension can be taken tax-free, depending on scheme rules.