Pensions Bill

Subject to the general point on not needing to be specific in the Bill at this stage, the noble Baroness is right to say that broadly we are speaking from the same page on this. I revert to the point that I believe that personal accounts will be designed to complement rather than compete with existing pension provision. However, I entirely accept that just to assert that will not make it happen. We believe that automatic enrolment will result in a significant increase in participation among the target group. Our research suggests that between 6 million and 10 million pension savers will join the personal accounts scheme. In the long term, we expect the scheme to have between £100 billion and £200 billion in funds under management. The noble Lord, Lord Oakeshott, and the noble Baroness, Lady Noakes, raised the issue of whether the cap would squeeze out other providers. The Government have consulted on the annual limit of £5,000 on contributions into personal accounts. We are considering a wide range of views on what a suitable contribution limit should be and we are analysing a range of impacts that a contribution limit could have on individuals, the pensions market and the personal accounts scheme. The final decision will balance the twin aims of focusing personal accounts on moderate-to-low earners and allowing sufficient flexibility for individuals within the scheme who wish to save more. We plan to announce our determination on this as part of the imminent consultation response. I cannot be more specific.