Pensions Bill

My Lords, the noble Lord, Lord Oakeshott, makes my task a little easier. I am grateful for that. I am also grateful for the amendment, as it gives me an opportunity to explain fully again the Government’s position. The amendment seeks to remove the power to repeal the contribution limit. The 2017 review will look at whether the contribution limit and transfers remain appropriate once the reforms have had a chance to bed in. However, as we have just debated, we should not pre-empt the outcome of that review. It is therefore important that the Secretary of State has the ability to amend the legislation if the review concluded that it was necessary—for example, if it found that the limit was hampering saving. If we were to remove the Secretary of State’s ability to repeal Clause 69, the personal accounts scheme would then be required to operate a limit until a suitable opportunity to amend primary legislation arose. In that situation, we would need to find an alternative way of building in flexibility. That may, for example, mean that we would raise the limit substantially, but that would generate complexity around communications for the scheme trustees as they would have to continue to explain the provision and how breaches would be handled. Of course, if the review evidence indicates that the limits should remain, the Secretary of State is not required to use this power and the limits can remain or be adjusted as necessary. I remind noble Lords that the Delegated Powers and Regulatory Reform Committee has scrutinised this power and decided that its use, under the circumstances that I have just described, is appropriate. I should also add that Parliament would be able to debate the exercise of the power, as it is subject to the affirmative procedure. I hope that the noble Baroness can accept my assurance that the Secretary of State would exercise this power only if the review conclusively found that it was appropriate. The noble Baroness asked me specifically about competition law and the market position. I am afraid that off the top of my head I cannot give an answer to that. I shall certainly follow up the point in writing. I understand the significance of the issue. I do not think that I shall receive helpful comment on that from my officials in the next few minutes so I promise to write. Notwithstanding that, I hope that I have said enough to encourage the noble Baroness not to press the amendment.