Oral Answers to Questions

Jack Dromey Excerpts

Monday 27th January 2020 Commons Chamber

[Guy Opperman]

It is a pleasure to welcome my hon. Friend to the House. She obviously knows that Ken Clarke was a legend to us all, and I am sure that she will be a great champion on behalf of the citizens of Rushcliffe.

Sadly, too few schemes are making any form of disclosure about their environmental investments and their climate risk, and I am determined to change that. Every private occupational pension holder should be able to know, individually, how their fund is invested and be able to hold the trustees and asset managers to account.

[Jack Dromey (Birmingham, Erdington) (Lab)]

With Australia burning, South sea islands drowning, millions suffering from pollution and many dying, the world faces an unprecedented climate crisis. The power of pension funds is immense and, while I welcome the funds that have demanded that investment managers must, in the words of the Minister, “do the right thing”, so much more can, and should, be done. Will he therefore agree to cross-party, Front-Bench discussions, including on convening a pensions summit of all those with power, urging them to discharge their responsibilities to clean up our world?

[Guy Opperman]

I have been fortunate to work with the hon. Gentleman on a number of policies over the two and a half years that we have both held this portfolio. Clearly, I will wait to see the details of his proposals, but I would be delighted, subject to having read and considered them properly, to meet him and, at the very least, discuss how we take these matters forward.

--- Later in debate ---

[Dr Coffey]

My right hon. Friend the Secretary of State for Business, Energy and Industrial Strategy leads on this issue. I assure my hon. Friend that we encourage people to take up the options and we support their efforts. We will continue to do more with our work coaches on helping people to get the most out of working.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The Government have said that the aim of the Pension Schemes Bill is to support pension saving, putting the protection of people’s pensions at its heart. However, this weekend, we learned that the Financial Conduct Authority is preparing to write to just over three quarters of firms that advised individuals on pensions between 2015 and 2018 about “potential harm” in their defined benefit transfer advice. How can the Government claim to have a joined-up pension policy when pension freedoms can be exploited, giving licence to rogue financial advisers to put at risk people’s savings for retirement? Some have paid a terrible price, impoverishing them for years to come.

[The Parliamentary Under-Secretary of State for Work and Pensions (Guy Opperman)]

The hon. Gentleman will realise that FCA rules already require an individual to seek independent advice when making a DB transfer, but I urge the FCA both to crack down on transfer scammers and to ensure that the quality of advice is fit for purpose. I welcome the FCA’s action at this stage.