Public Service Pensions and Judicial Offices Bill [Lords]

Debate between John McDonnell and Simon Clarke

Report stage
Tuesday 22nd February 2022 Commons Chamber

[Mr Simon Clarke]

I thank all right hon. and hon. Members who have spoken today. I appreciate the constructive way in which all Opposition parties have handled the Bill. Today’s debate has focused on several important themes, which I will address in turn.

One central theme was the clarification requested by the hon. Member for Hampstead and Kilburn (Tulip Siddiq) and other Members about whether the estimated £17 billion cost of remedy will be included in future valuations of the cost control mechanism for unfunded schemes. The answer, definitively, is that it will not. The Government will reform the cost control mechanism to a reform scheme-only design for future valuations. I hope that that reassures the House.

[John McDonnell]

Will the Minister give way?

[Mr Clarke]

Very briefly, but I am conscious of the need to make progress.

[John McDonnell]

I just need the Minister to say that it will be an employer cost, not a member cost.

[Mr Clarke]

The cost of remedy sits with the employer, namely the Exchequer.

[John McDonnell]

Let us be absolutely explicit. With regard to the cost control mechanism, is it the case that this will be not a member cost but an employer cost? Just nod, Minister: that is all you have to do.

[Mr Clarke]

I can confirm that the liability for this rests with the Exchequer. It will be a reform scheme-only design. [Interruption.] I will write to the right hon. Gentleman with the clarification that he is requesting.

[John McDonnell]

Correspondence is not good enough. Put it on the record.

[Mr Clarke]

I will ensure that it is on the record.

My right hon. Friend the Member for Newark (Robert Jenrick) raised the important issue of guidance for the local government pension scheme which will, in effect, prevent bodies from engaging in boycotts, divestment and sanctions activities. In our manifesto, we committed ourselves to stopping public bodies running their own direct or indirect boycotts, and the wider BDS movement. I am grateful to my right hon. Friend for the all the hard work that he has done to draw the House’s attention to this important issue. I also pay tribute to Lord Pickles for his work.