Pension Schemes Bill [HL]

Baroness Fookes Excerpts

2nd reading & 2nd reading (Hansard): House of Lords & 2nd reading (Hansard)
Tuesday 28th January 2020 Lords Chamber

[Baroness Fookes (Con)]

My Lords, I am delighted that my noble friend Lady Stedman-Scott is piloting the Bill through all its stages, and I wish her and the Bill itself all possible success. I say to my immediate predecessor, the noble Baroness, Lady Hayman, that it was a refreshing change to look at this from an entirely different angle, which is also worthy of further consideration.

On the Bill itself, clearly, pensions have had a chequered career so far, and it may not be altogether plain sailing in the future. However, I cast my mind back to more than 100 years ago when there were no pensions of any kind. Many of the poorest people in the land faced the prospect of destitution if they did not have a family to support them, if their work gave up on them because they were unable to carry it out, or if they were suffering the infirmities of old age. We have come a long way from then, thank God. None the less, obviously we still have things to do, but I am delighted that the Bill is taking us further forward. Like the noble Baroness, Lady Hayman, I have no particular expertise in this subject, and if she was feeling some trepidation, I share the feeling.

I welcome the part which the noble Lord, Lord Hain, talked about as the third way for pensions, in particular that it has brought together Royal Mail and a major union—the Communication Workers Union. I can recall a time when employers and trade unions appeared to be totally at loggerheads—positively at war —and I am delighted that we have come to a pleasanter era, in which the trade unions can do a valuable job for their members. I give this union full credit, and I hope that it will be the forerunner of others.

Of course, we regret the gradual—or maybe rather fast—decline of the defined benefits scheme, but I do not know that anyone, through the Bill or through any other means, can force employing organisations to continue with it if they feel that it is not for them. Therefore, surely it is better that we have another scheme, which may not be as good but is infinitely better than nothing in particular.

On the regulator, I take the point that was made about not having such fierce penalties for errant employers that you put people off becoming trustees—I fully accept that. I hope that the draconian powers are intended only as a last resort for people who have gone completely beyond the pale. However, the proper emphasis should be on those other powers of the regulator, to make sure that employers and schemes do not get into that dire position and so that there are reins to hold them back. I hope that that is the intention; perhaps my noble friend the Minister can tell me that that is what the Bill has in mind.

On delegated powers I always twitch a bit, as I was both a member and later chairman of the Delegated Powers Committee, and I am immediately suspicious when faced with regulations yet unknown, particularly when there seems to be a vast number of them. Other Members have detailed that, so I will not repeat it. I am glad that the Minister herself mentioned delegated powers and has offered kindly to try to give us some indication of the scope in Part 1.

However, I am also interested in Part 4, on the dashboard. I hope that the Minister might be able to bring forward some draft regulations on that basis. That is probably asking a great deal. But I recall that, when I chaired the Delegated Powers Committee, we held a short inquiry into what one might call the birth of Bills. We were told that there was a Cabinet committee, through which a proposed Bill had to pass to ensure that it was fully operational and all right before it was let through the gate. The fact is that a lot of them escape through the gate without that serious consideration of all the details. I would have supposed, with a Bill of this kind—which is in its second incarnation and which has been the subject of full consultations, which I fully applaud—that somewhere in the background, some of these regulations and powers should have been sorted out. As we all know—it has become a cliché, has it not?—the devil is in the detail. It is therefore extremely important that we have some idea of what the Government have in mind before we get to the point when regulations are laid before us and, as I rather crudely put it, you either swallow them whole or spit them out. I do not want to get to that stage.

Incidentally, how did the dashboard scheme come by that curious name? I presume that it refers to the driving of a car with the dashboard in front of you. However, as far as I am aware, no car I have ever driven could rely on the dashboard alone. But that is by the by. It seems to have acquired that name. I welcome it, and I would have done so years ago when I had several pensions. I had done my utmost to make sure that I had provided as well for myself as possible. However, I have to say that I was one of those people in their 50s who have been referred to, and I did not know what I would get at the end of it. I would certainly have welcomed that sort of information, which will be very useful for people today. Although it gives just basic information, how much easier will it be if you want to go to a decent, reputable finance adviser and they have that information on which to work? I think it is a good idea.

Like my noble friend Lord Young, who is not in his place, I query why we want one main public dashboard and a series of commercial ones. I would have thought that, at the very least, one would start with the public one and, if it seemed necessary at a later stage to introduce commercial ones, so be it. I am blessed if I can see why we have six, seven or whatever number when one would do. Again, perhaps my noble friend can enlighten me on this point.

That said, the measure is welcome. I hope that it might be simple to start with, to obviate the point made by another noble Baroness that it could be extraordinarily expensive; in fact, I think that two noble Baronesses made this point. I take that entirely. Perhaps we can start with something straight and simple and work up from there; otherwise, it may be 10 years before we have sight of this noble enterprise if it becomes too complicated. In fact, part of the problem sometimes is that something that starts as a good, simple idea is then elaborated on and has further layers added to it until, in the end, it bears no resemblance to the straightforward, simple scheme we all thought we had.

On that basis, I conclude my remarks since the hour is late and I do not have the expertise of so many of those around me.

Pension Schemes Bill [HL]

Baroness Fookes Excerpts

Committee stage & Committee: 4th sitting (Hansard) & Committee: 4th sitting (Hansard): House of Lords
Wednesday 4th March 2020 Grand Committee

Relevant documents: 4th and 7th Reports from the Delegated Powers Committee and 2nd Report from the Constitution Committee

[The Deputy Chairman of Committees (Baroness Fookes) (Con)]

My Lords, I am obliged to make the usual announcement: that if there is a Division in the Chamber, this Committee will adjourn immediately for 10 minutes.

Amendment 80

Moved by

--- Later in debate ---

[Lord Warner]

I wish to respond to the Minister before I withdraw my amendment.

[The Deputy Chairman of Committees]

Once the noble Lord has spoken, the question has to be put.

[Lord Warner]

I thought that I am allowed to say whether I am withdrawing the amendment.

[Baroness Fookes]

It has not yet technically been moved, and you are now moving it. Perhaps I should clarify for the Committee that where there is a group of amendments being debated together, only the first amendment is moved. If a noble Lord wishes to move an amendment, it has to come in its numerical order. The noble Lord was not moving his amendment, he was speaking to it.

[Lord McKenzie of Luton]

Can the noble Lord move the amendment?

--- Later in debate ---

[Baroness Fookes]

Yes, he must move it, because he has started to speak to it.

[Lord Warner]

I beg to move Amendment 86. In response to the Minister, I think we will need to have some kind of meeting after 11 March, which may involve some of the parties who are very anxious about this. I hope the Minister will take away that thought and get back to me, and to others, when he has had time to consider.

[Baroness Fookes]

If no member of the Committee wishes to respond, the noble Lord may withdraw the amendment.

[Lord Warner]

I beg leave to withdraw the amendment.

[Baroness Fookes]

I am sorry about the schoolmistressy lesson on the subject.

Amendment 86 withdrawn.

Pension Schemes Bill [HL]

Baroness Fookes Excerpts

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

[Baroness Fookes (Con) [V]]

My Lords, I join other noble Lords who have already spoken in saying how pleased I am to see that my noble friend the Minister has listened to many of the recommendations made by the Delegated Powers Committee, which were warmly endorsed by the committee to which I belong, the Constitution Committee. We have had two powerful committees of one mind, so I am extremely pleased by this turn of events. Perhaps I may make one or two points because I know that the chairman of the Delegated Powers Committee, my noble friend Lord Blencathra, is to come in later in this debate, and I am sure that he will want to go into much more detail than I am minded to do.

The first-time-only procedure has happily now been abandoned in Clauses 11 to 17. It is not simply that the current Administration may well want subsequently to bring forward massive changes, but that they cannot know what use a future Administration might make of them. That is all the more reason to be careful about what powers are given to any Government.

I confess to some disappointment about the negative procedure being used where urgent changes need to be made. The Government seem to be suggesting that that is absolutely essential because otherwise delay would be difficult. Have they not heard of the “made affirmative” procedure, which allows a Government to put a regulation into action immediately, and then after 40 days Parliament has the opportunity to confirm it or possibly to reject it altogether? I hope that the Government, and the departments which support them, will no longer continue to use this weak argument in favour of the negative procedures. That said, I am pleased with the way things have gone and I offer my noble friend a bouquet—a modest bouquet—for what she has done.

[Lord Naseby (Con)]

My Lords, it is entirely appropriate that I should first declare my interest. I am a trustee of the Parliamentary Contributory Pension Fund; I have been one for the best part of 20 years. I am also 83, and all I can say in reflection is that I was formerly the chairman of three financial companies, and I have been a pension trustee on two schemes prior to the one—the only remaining one—that I am on now. It is not my intention to comment too much on the Bill; rather, I see my role in the interests of the membership—I am a member and there certainly will be others in Parliament who are members—to keep a watching brief and, if appropriate, to make some comments to my noble friend on the Front Bench. I should also say to her that I was the Chairman of Ways and Means in another place and I too was not in favour of the negative procedure for really serious things. She has taken a very wise decision on Amendment 1; I am sure that it is the right one and should be applauded on all sides.

I will listen to my noble friend’s answer on Amendment 2 because, if it is right in the round, there would need to be a specific reason for its not being appropriate in leaving out subsection (8). Amendment 33 is in this group and has been commented on. I have given my age and I think that my gender is obvious, as is my ethnicity. It is appropriate that every set of trustees should have a range of people as regards age, experience, gender and so on, but in my judgment the key issue is commitment. We are very lucky on the Parliamentary Contributory Pension Fund because the members, almost to a man and a woman, turn up regularly to meetings, ask good questions and are good advisers, so that, at the last point, as a fund we were very much in positive territory. As I say, I am not going to make too many comments, so without further ado I once again congratulate my noble friend on the Front Bench.