Pension Schemes Bill [Lords]

Richard Thomson Excerpts

Report stage & 3rd reading & 3rd reading: House of Commons & Report stage: House of Commons
Monday 16th November 2020 Commons Chamber

[Ruth Jones (Newport West) (Lab)]

I am grateful to be called and to have the opportunity to speak briefly in this important debate, and it is a pleasure to follow the hon. Member for Kilmarnock and Loudoun (Alan Brown), who made several important points.

The Bill seeks to introduce a number of measures aimed at protecting savings and providing simpler oversight of pension savings. This includes the introduction of pension dashboards, collective defined contribution schemes and new powers for the Pensions Regulator to tackle irresponsible management of private pension schemes. These are important steps forward and they are long overdue. In particular, I welcome the strengthening of consumer protections against scams, as I know many examples of residents in Newport West who have been victims of these scams and have not only lost so much money, but been deeply affected by the scams for years after the event.

I am delighted that many of my noble Friends in the other place were able to secure some important amendments to the Bill—in particular, the amendments that require trustees and managers to take into account the Paris agreement and key domestic climate targets in their overall governance and disclosure of climate change risk and opportunities. This is the first time that climate change has featured in domestic pensions legislation and that is to be welcomed.

I urge Ministers and Government Back Benchers to support Labour’s efforts to mobilise billions of pounds towards the vital and timely effort to tackle climate change through pension funds. Given that Ministers refuse to support the amendment in the name of the shadow Minister, my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), on asking pension funds to develop strategies to help to meet our obligations under the Paris agreement, I hope that we will receive an explanation of how they expect to achieve their goal of net zero carbon emissions by 2050 or sooner.

The other place also forced the Government to amend the Bill to guarantee a publicly owned pensions dashboard free at the point of use and available to everyone. I have called for that before, as has the shadow Minister, and it is a demand that many residents from across Newport West have raised with me in recent weeks and months. The changes contained in the amendment would ensure that consumers are protected and that they do not make poorly informed or hasty decisions when they see their pension information for the first time. I hope that the Minister will welcome that amendment.

Finally, I pay tribute to my right hon. Friend the Member for East Ham (Stephen Timms), who spoke earlier. He has worked hard on these issues and is a man of wisdom and experience. I support his new clause 1, which would set up opt-out appointments with Pension Wise for pension scheme members five years prior to their retirement date, because this is a point at which scheme members are so vulnerable to transfer advice that is not in their best interest or to tax scams. This is so important for the people who need sound guidance and advice before they take their pensions.

The Bill is to be broadly welcomed and I urge Ministers to accept all efforts to make it stronger, more effective and long-lasting.

[Richard Thomson (Gordon) (SNP)]

I rise to support amendments 7 and 8 and new clauses 4 and 5 in my name and those of others. A recurring theme throughout the debates on Second Reading, in Committee and this evening has been the need to try to avoid unintended consequences. That is a particularly important mindset to approach this with given that the consequences of all that we are putting into legislation this evening will potentially last for decades, and the decisions that we take will affect people’s quality of life and financial opportunities in retirement. It is worth bearing that in mind when approaching the Bill, and when we consider any well-meaning assurances that we might get from the Government Front Bench in lieu of the actual substantive changes that have been asked for in the amendments and new clauses.