Pensions Dashboard

Jim Shannon Excerpts

Wednesday 6th February 2019 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate, and I congratulate the hon. Member for Hendon (Dr Offord) on securing it. I am happy to make a comment within the timescale that you have set out, Mrs Ryan,

Pensions are a thorny issue; many people made their financial plans based on the promise of a pension that has not materialised. There are also those who invested, only to lose their money and get only 30p in the pound of their investment, but that is a debate for another day; in fact, we had a debate on that last Thursday in the main Chamber; it was on Equitable Life, and those who had paid into a pension but did not get their money. It is easy to understand the concerns that some of us have about people’s need for a pension; the hon. Gentleman referred to the need for a pensions dashboard.

I can well recall—although it was not yesterday—my mum taking me down to the Northern Bank, as it was, to open my first account when I was 16. I also remember that when I turned 18, she took me to fill in the policy with the insurance man and said, “Make sure you’re putting money aside every month for that purpose.” That was thriftiness, but it was also really good direction from my mum, as always, because it was important that we knew why we did those things. I am a wee bit older now, and I am glad that I signed up for those things many years ago, because I will benefit from them in the years ahead.

Today’s debate is an attempt to ensure that people are not left in the lurch in the way that women born in the 1950s and the Equitable Life savers have been. It is an issue that it is certainly worth people considering if they are working hard and seeking to invest, so that someday they do not have to work, but can enjoy life without having to miss out on the things that they have while working a nine-to-five job. It is my sincere hope and desire that the work that the Treasury Committee and others are doing to prevent another Equitable Life scandal will be successful, but irrespective of that, a dashboard with real-time information has to be useful for those who are planning their future, as the hon. Gentleman said.

I must say that the key decisions that came from the Government consultation give rise to some concern. One concern relates to data security. The fact that all financials are held and accessible by the industry independently raises concern. I hope the Minister can reassure me on that. My concern is heightened by the breach in Independent Parliamentary Standards Authority data security, which led to the addresses of my staff members being released. That shook our office and caused great concern, given that we hail from a political party in Northern Ireland, and given its history. Such data security breaches underline my concerns. The Government must ensure that there are guidelines in place to reassure people, including my constituents and me.

I also have grave concerns regarding proposals that would result in pension fund members being targeted by those who want their business. Although I agree that multiple dashboards would improve consumer choice, it is essential that alongside those—I think the hon. Gentleman referred to this—there be a non-commercial dashboard, hosted by the single financial guidance body, and offering an impartial service to those who prefer that, or who may not want to be targeted by the market. We must cover all choices and tastes.

Another essential issue for me is that the cost of this dashboard should not hit the pension or the consumers; there should rather be an obligation on the industry to bear the cost. Although the autumn Budget has made available funding for 2019-20 to facilitate the industry’s making dashboards a reality, it is clear that that is to get the dashboard on its feet, as opposed to making it a Government service. That is another consideration.

I am conscious of time, so I will conclude with this point. In principle, I support the idea of people having greater knowledge of their financial status. There are so many people who come into my office with their pension annual statement, not understanding what it means—not only older people, but young career people who have been made to sign up to a pension, but have no idea what the money that they pay, or their employer pays, is used for. It is surprising how many people do not know.

[Dr David Drew (Stroud) (Lab/Co-op)]

That is why we need proper enterprise education in schools. Does the hon. Gentleman agree that that is when it should start, and that it should not end until people enter the workplace?

[Jim Shannon]

I thank the hon. Gentleman; just as the hon. Member for Hendon thought that someone had read his script, my next words are on the very subject to which the hon. Gentleman refers. The subject is not covered in school, but it clearly should be, because these young people literally have no idea what their pension means. He is absolutely right, and his intervention underlines the responsibilities that we have a duty to perform. I sincerely believe that a pension dashboard can help this generation, but the safety and security of financial information is paramount.

I look forward to the Minister’s response; I feel that some of the assurances I have sought in this small contribution are assurances that he can provide, and if he does, he will set a lot of minds at rest.