UK Parliament / Open data

Pension Schemes Bill [Lords]

I welcome what the Minister says, and I did not want in any way to undermine the provision in the Bill and the incredible progress that it represents on our journey to a greener financial future. I welcome those steps wholeheartedly, but I wish to highlight that those risks, although disclosed, will be there. Many of our constituents, every month in their payroll, put investments into index-based funds in which those risks are inherent. It is incumbent on us all to recognise that that could be a big driver of UK returns, given that a significant portion of the index consists of carbon-based industries in the UK.

I make that point, and I make the point about charges, because the pension dashboard will play a vital role in showing people what they are paying for those returns in an environment where interest rates are virtually zero, where the index has quite a lot of climate-affected assets, where charges can be as high as those from NEST, the state-backed provider, and where investment returns could be lower for a protracted period as we recover from the pandemic. It is worth flagging the fact that giving information on charges in particular and the way in which they compound over a lifetime will be a powerful part of the very many welcome changes that we can see in this excellent piece of legislation.

2.53 pm

About this proceeding contribution

Reference

681 cc370-1 

Session

2019-21

Chamber / Committee

House of Commons chamber
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