Oral Answers to Questions Debate
Full Debate: Read Full DebateGregg McClymont
Main Page: Gregg McClymont (Labour - Cumbernauld, Kilsyth and Kirkintilloch East)Department Debates - View all Gregg McClymont's debates with the Department for Work and Pensions
(10 years, 9 months ago)
Commons ChamberThe hon. Gentleman raises an important point. In fact, consolidation is happening; the number of medium-sized schemes has declined quite significantly in the past few years. The quality standards that we will be putting in place will mean that running a small, substandard, sub-scale scheme will not be an option, so we anticipate that there will be much more consolidation. Together with the National Employment Savings Trust, the Government’s own scheme which already has over 500,000 members, we are moving towards better value for money.
Tonight on Channel 4, the Minister will accuse big pension companies of making excess profits at the expense of those who have worked hard and saved all their lives. “Dispatches” will claim that many savers are losing up to £10,000 per year every year in their retirement as the companies make excess profits, yet the Pensions Bill that the Minister has just taken through the Commons does precisely nothing to tackle rip-offs in annuities. When will he get a grip on the annuities market and end these rip-offs?
I make no apology for defending consumers against an abuse that has gone on for far too long, with people buying annuities where they will get their money back only if they live until they are 90 or beyond. The Financial Conduct Authority, which was created only about six months ago, has already reported on annuities and will bring forward further proposals. We are working with our colleagues at the Treasury who lead on these matters to make sure that this issue, which has gone long unaddressed by successive Governments, is finally tackled.