Pensions Bill

As explained, Amendments Nos. 106 and 107 would amend Schedule 6, requiring the delivery authority to provide certain detail in its annual financial statement. New Clause 141 would require six-monthly reporting of public expenditure in connection with the personal accounts scheme. Taking the amendments to Schedule 6 first gives me the opportunity to explain the existing reporting requirements set out in that schedule. The provisions require the authority to report annually on its performance and financial position, a requirement which applies equally to other NDPBs. Unlike every other NDPB, the authority will be required to provide this report to the Secretary of State and the Comptroller and Auditor General for examination and approval. Amendments Nos. 106 and 107 would include in primary legislation a requirement to account separately for the implementation and advisory services of the delivery authority. It would also require details to be included of the authority’s expenditure which would be recovered from future income of the scheme derived from the public purse. This Bill focuses on the setting-up of the delivery authority, allowing it to provide advice and consider proposals on the most effective way to finance the scheme. The income and expenditure associated with the personal accounts scheme that will be incurred beyond this advisory phase is not a matter for this Bill. It is our intention to bring forward further provisions on the scheme, including details on its funding arrangements in the subsequent Bill. We are currently evaluating what funding will be needed to support the successful delivery of the scheme and there will be ample opportunity for Parliament to scrutinise that detail in due course. I can assure Members of the Committee that in our stewardship role, my department will regularly review the expenditure of the authority and the Secretary of State will have the necessary powers to require preparation of any information such asthis. However, we see no benefit in adding further burdens to the comprehensive regime of financial accountability, which already exists to report the authority's annual expenditure. In the spirit of keeping Members of the Committee informed, I should like to give notice that we intend to table an amendment to paragraph 19of Schedule 6 on Report. This paragraph currently requires the Comptroller and Auditor General tolay the delivery authority’s audited accounts before Parliament. However, the NAO has informed us that recent policy has been to require the sponsoring department to perform this role; therefore, we will introduce that change. On Amendment No. 141, the financing of the personal accounts scheme is important, and I can confirm that it is intended to be self-financing in the longer term. However, as I have already said, this Bill focuses on the setting-up of the delivery authority, initially with a remit to provide advice. The funding of the delivery authority was discussed in the other place. My honourable friend, James Purnell, the Minister with responsibility for pensions reform, made clear that the authority’s sole source of finance for this initial phase will be grant in aid. As mentioned earlier, the funding of the personal accounts scheme is not a matter for this Bill. It is our intention to bring forward further provisions on the scheme, including details of its funding arrangements, in a subsequent Bill. On that basis, I hope thatthe noble Baroness will feel able to withdraw her amendment. Perhaps I may just add that we all recognise the importance of getting this under way so that we can deliver personal accounts on time. Therefore, I look forward to continuing co-operation for the speedy passage of this Bill through this House.