Pensions

Wendy Chamberlain Excerpts

Tuesday 9th February 2021 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

As the Minister set out, this is a technical piece of legislation that has to be approved every year, and ensures that those who accrued pensions from contracted-out defined benefit schemes between 1988 and 1997 will receive increases in line with inflation. This will provide a positive impact to those people for whom that applies. I thank the right hon. Member for East Ham (Stephen Timms), Chair of the Select Committee, for raising his concerns. I entirely agree that it is incumbent on the Government proactively to reach out to those who may have missed out on moneys due to error or omission on the part of the Government or the Department.

There may now be fewer defined benefit schemes than there were 30 years ago, but many will not reach maturity for decades to come. That will also be the case for many of the people on DB schemes between 1988 and 1997, who will have many years left to work. We have recently spent time deliberating the importance of defined benefit schemes during the passage of the Pension Schemes Bill. I was pleased to see the Minister in the Lords provide reassurances on the Government’s plans for defined benefit schemes. The next steps lie with the regulator—after the Queen grants Royal Assent to the Bill, of course. Therefore, like the shadow Minister, I would be grateful if the Minister updated the House on what discussions have taken place with the regulator regarding defined benefit schemes and what timescales he estimates for the measures in the Bill, such as collective defined contribution schemes, to come into force.