Oral Answers to Questions

Clive Jones Excerpts

Monday 12th October 2026 Commons Chamber

[Andrew Western]

Clearly, I would be very happy to meet the hon. Lady. That sort of distance is unfortunate, and I am sorry if that is the experience of her constituent or, indeed, their apprentice. As I say, I am very happy to meet her to discuss it further.

[Clive Jones (Wokingham) (LD)]

9. What assessment he has made of the potential merits of requiring pension scheme surpluses in defined-benefit schemes to be used to improve pensions for members before surplus funds can be released to sponsoring employers.

[The Minister for Pensions (Torsten Bell)]

The Government’s reforms provide greater flexibility for well-funded defined-benefit pension schemes to share surplus with employers and to benefit members. Scheme trustees, who must act in the interests of scheme beneficiaries, are best placed to determine the appropriate use of any surplus for their individual scheme. Trustees will agree how members can benefit, working with sponsoring employers.

[Clive Jones]

Is it not the case that nothing in law stops the Government requiring pre-1997 pensions to be restored before surplus goes back to employers, and that the only reason it is not happening is that the Minister has decided that it should not?

[Torsten Bell]

I thank the hon. Gentleman for his question; he and I have met and discussed this issue on many occasions. Around three quarters of schemes already provide some pre-1997 indexation, but the hon. Gentleman is right to point out the strength of feeling on this. I have met with many MPs and scheme members, including those in south Wales who have been affected by lack of pre-1997 indexation on their defined benefit schemes. It is separate from the changes that we have already introduced for the Pension Protection Fund’s indexation.

Trustees need to be in the driving seat. Employers will have no direct access to a scheme’s surplus. The flexibilities we have put in place through the Pension Schemes Act 2026 and the guidance being provided by the Pensions Regulator are already changing the nature of the discussion between trustees and employers, and will lead to a step change in this area.