Superannuation Bill

Amendment 8 addresses a practical issue concerning the timing for a new scheme, the coming into force of the Bill and the operation of any caps, now that they look likely to remain. It would delay the commencement of Clause 3, which sets the caps, until a month after the Act is passed by Parliament. Indeed, we would be amenable to a later date, should the Government consider that more time is necessary; or to the more flexible option of that clause being subject to a commencement order to be laid by the Minister. We took from our earlier discussions that the sequence of events would be as follows. On day one, the Act would enter into force. On day two, Section 3 would be repealed by order. On day three, an order outlining the new CSCS would be laid, to be brought into effect immediately. However, from our discussion with the Minister and his officials earlier this week, it appears that there may now be a noticeable gap between the entry into force of the Act and the laying of the scheme order. This may be influenced by the timing of the conclusion and outcome of trade union ballots, which we understand will be on 14 January 2011. We are concerned that this delay will mean that people will be subject to the effects of the caps before the Government get around to repealing them and making an order for the new CSCS. This produces an intolerable situation, in which those made redundant or agreeing to voluntary separation between entry into force of the Act and the laying of the order for the new scheme would face the limits imposed by the caps. It would be possible to cater for this by inserting a delay for the coming into effect of Clause 3, hence our amendment. We have assumed a delay of one month but the Minister may wish to comment on whether this period is likely to be sufficient. As noted, an alternative way of dealing with this would be for there to be a power to bring the section into being by order so that alignment could be assured, although Clause 4(4) might need to be adjusted if this route were followed. This practical issue is yet another reason why the caps are more trouble than they are worth and why they should be removed from the Bill, but I acknowledge the vote that we have just had. However, if removal or delayed introduction are not supported, what will happen in this interim period? Will departments be advised not to proceed with any separations until a new scheme or order is made? What advice has been given to date? When we raised this issue with the Minister in our meeting, it was clear that officials had not given total thought to the matter. What reassurance can the Minister now give to civil servants who are expecting redundancy? If Royal Assent is given before the Recess and the new scheme does not come into effect until mid-January, or even later, it will consign potentially thousands of civil servants to a pretty miserable Christmas. How will the Minister ensure that there is a level playing field in operation? Since each department is, I understand, a separate employer, it would remain within the discretion of a department to treat individual employees as it saw fit. In the absence of repealing Clause 3, this would mean that it had to impose the statutory maximum on any redundancy payments. This would be the law. What is to stop departments with hard-pressed budgets being tempted to proceed in the window where the caps drive the compensation limits? Should this happen, what commitments should be given about bringing people up to the level of the new scheme when this is introduced? These are real practical issues. We do not raise them just to be picky over the wording of the Bill. If the caps are to take effect in the circumstances outlined, they will have a real and detrimental impact on the lives of people subject to the scheme. If the Minister is not able to meet us on the detail of the amendment, I would press him to be very clear on the record about how the Government are to handle these matters. I beg to move.