UK Parliament / Open data

Pension Schemes Bill [Lords]

Proceeding contribution from Angela Eagle (Labour) in the House of Commons on Monday, 16 November 2020. It occurred during Debate on bills on Pension Schemes Bill [Lords].

It is a pleasure to follow the hon. Member for West Bromwich West (Shaun Bailey) in this reasonably consensual debate.

Madam Deputy Speaker, there is nothing like seeing men rushing into the Chamber in hazmat suits to ensure that we are as brief as we possibly can be, even though—and this is no criticism of the Chair—the grouping of these amendments means we have rather a lot of things to refer to in this gigantic group. One of the things I am going to do is to refer only in passing to new clause 1, because so much has already been said about it, and to concentrate a bit more of my remarks on the pensions dashboard and some of the amendments there, because that has not really received much attention in the comments we have had so far.

There are some themes that are really important to bear in mind in this whole group and in the Bill that we are discussing today. The first is strengthening consumer protections, which is what new clause 1 is about, and ensuring that when people are making a decision about probably some of the largest amount of funds they have laid aside for their entire lives in savings, and they are going to make decisions about what to do with that

money that are irreparable, they do not get their heads turned by a slick advertising at one end and con artists at the other end, and that they get enough time, space and consideration to make the choice that is right for them.

Our pensions landscape is very complex, and it is getting more and more complex as it matures, changes and evolves. We are left trying to deal in legislation with DB schemes, DC schemes and CDC schemes, which we all welcome, but all these changes and innovations over time make the pensions landscape difficult for people to navigate. As we all know, consumer protections are quite weak, and the introduction of so-called pension freedoms in 2014 increased the chances for mis-selling and scams, so we have to be very careful. That is why I support new clause 1. I support any protections that will make it slightly more inconvenient for people to shift their money and that will reassure regulators, providers and customers of pensions that this decision is the right one for them, because, as we have heard, it is irreparable.

I do not agree with those who have said that we have enough protection against scams. The cost of losing a pension is huge and irreparable. The risks for scammers and con artists are quite low, but the minimum rewards are huge. Because our capacity to deal with fraud in this country has been eaten away, meaning that it is not nearly as good as it should be and needs to be improved massively, the chances of scammers being caught are quite low too. The potential for high rewards from conning people out of their life savings versus the risks taken means that we are a magnet for scammers.

What we have to do—and what the Bill begins to do—is try to close some of those loopholes. That is what amendments 2 to 5 are about. It is also about regulating superfunds, which is covered in new clause 6, and creating the new criminal offences that we all agreed with in Committee, to try to strengthen regulation, put up some real barriers and increase the risk that those who are trying to con people out of their pensions will be caught. I support amendments 2 to 5, as well as new clause 6, which is about regulating superfunds.

The introduction of the pensions dashboard is one of the things that will mark the Bill as an important piece of pensions legislation. I commend the Minister for all the work he has done to create the capacity for pensions dashboards to be introduced, so that information can be collected from disparate places and presented in a way that is meaningful to consumers. We are now trying to make the pensions dashboard more useful and important and to ensure that it is introduced in a way that does not throw the baby out with the bathwater.

Amendments 11, 13, 14 and 15 are about how the dashboard should work. While I commend the Minister for the huge amount of work he has done, he has unfortunately overturned some of the amendments made in the other place on the dashboard. One of those amendments would have ensured that the first dashboard introduced was the publicly provided objective one, which would have a year to bed in before other commercially offered dashboards were introduced. The other place decided that that would be a good thing to do. The Minister and his Government have decided—he gave us explanations in Committee—that it would not be, and

that he wants multifarious dashboards to crop up all over the place, some of which are commercially offered, and some of which I think would just confuse the situation.

7 pm

About this proceeding contribution

Reference

684 cc82-4 

Session

2019-21

Chamber / Committee

House of Commons chamber
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