Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what estimate they have made of the cost of compensation for the loss of inflation protection for benefits accrued before 1997 for past members of the AEA Technology pension scheme who were transferred out of the public sector scheme in 1996.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
We recognise the challenges members of the AEA Technology pension scheme face and are directly tackling the point you raise about the loss of inflation protection. The Chancellor announced at the Budget that this Government will introduce annual increases on compensation payments from the Pension Protection Fund and Financial Assistance Scheme that relate to pensions built up before 6 April 1997. These will be Consumer Prices Index-linked (capped at 2.5%) and apply prospectively (i.e. to payments going forward) for members whose former schemes provided for these increases.
I am pleased to confirm that past members of the AEA Technology pension scheme with pre-97 accrual will benefit from this measure.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what analysis they have carried out to support the exclusion of UK listed investment funds as qualifying assets under the Pension Schemes Bill.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
The scope of the qualifying assets provisions in the Bill’s asset allocation reserve powers are designed to reflect the scope of the Mansion House Accord, a voluntary expression of intent by seventeen major pension providers to invest 10% of their main defined contribution default funds in private markets, including 5% in UK private markets.
This reflects the Government’s intention that the reserve powers should not be open-ended but should be capable of serving as a limited backstop to the commitments made in the Mansion House Accord.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what discussions they have had with local authorities regarding the use of pension contribution holidays as their schemes have significant surpluses.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
Employer contribution rates are set as part of the triennial valuation process which is undertaken by all Administering Authorities in the Local Government Pension Scheme. The 2025 valuation, which will set contribution rates for 2026-27 onwards, is in progress and will conclude on 31 March.
The setting of employer contribution rates is locally led and managed. Administering authorities consult employers, including local authorities, to ensure that rates are sustainable for both the fund and employers. The Department does not set the rates or take part in these consultations.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many pension schemes have entered the Financial Assistance Scheme; and for what proportion of (1) schemes, and (2) scheme members, does the Pension Protection Fund have definitive copies of the original scheme's trust deed and rules in relation to pre-1997 pension increases.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
As of 16 December 2025, 1,045 schemes have transferred into the Financial Assistance Scheme.
The Pension Protection Fund (PPF) holds a significant amount of scheme information. We are confident that the PPF will be able to identify the information needed and successfully implement the reforms to award pre-97 indexation uplifts to compensation payments.
The PPF is reviewing the information it holds for each scheme. Alongside scheme rules, the PPF will use additional data sources, including scheme return data, member booklets, data provided on transfer, valuation reports, annuity reports, and bulk buyout schedules.
Where the position is unclear, the clauses within the Pension Schemes Bill provide that the presumption is in favour of the members. In such cases, the PPF will award pre-97 indexation.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment it has made of the level of investments by open UK defined benefit schemes, including the Parliamentary Pension Scheme, into UK equities.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Private sector defined benefit (DB) pension schemes which are open to new members allocate 42% of their assets to equities. However, this is not broken down by UK equities. See the PPF Purple Book for further detail: https://www.ppf.co.uk/-/media/PPF-Website/Public/Purple-Book-Data-2025/Pension-Protection-Fund-Purple-Book-2025-accessible.pdf
Public sector DB pension schemes are estimated to allocate around 9% of their assets to listed UK equities. See the Pension Policy Institute’s 2025 “Pension scheme assets” report: https://www.pensionspolicyinstitute.org.uk/media/i2cgonin/20250604-pension-scheme-assets-2025-final.pdf
The scheme trustees are responsible for the investment strategy of the Parliamentary Contributory Pension Fund and information on asset allocation is published in the scheme’s Annual Report and Accounts. These are published on the website of the Independent Parliamentary Standards Authority www.theipsa.org.uk/annual-reports.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government, in light of its current consultation on changing the inflation measure for long-term renewable energy pricing from the retail prices index to the consumer prices index, what assessment it has made of the impact of this change on the future willingness of companies to invest in long-term UK infrastructure projects.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
The Government has consulted on proposed changes to how support provided through the Feed-in Tariffs and Renewable Obligation schemes is adjusted for inflation. The consultation was accompanied by an analytical annex which set out the potential impacts of the policy. Updated analysis will be published alongside the Government Response next year.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Energy Security & Net Zero:
To ask His Majesty's Government how many members of (1) the Mineworkers Pension Scheme, and (2) the British Coal Staff Superannuation Scheme, have pensions in payment valued at (a) under £5000 a year, (b) between £5000 and £15,000 a year, (c) between £15,000 and £30,000 a year, (d) between £30,000 and £50,000 a year, and (e) over £50,000 a year.
Answered by Lord Whitehead - Minister of State (Department for Energy Security and Net Zero)
The information requested is set out in the table below:
Number of members in payment | ||
Annual pension | Mineworkers’ Pension Scheme | British Coal Staff Superannuation Scheme |
Under £5,000 | 40,716 | 5,871 |
£5,000 - £15,000 | 49,038 | 11,662 |
£15,000 - £30,000 | 12,869 | 11,858 |
£30,000 - £50,000 | 2,321 | 4,973 |
Over £50,000 | 124 | 2,577 |
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government what benchmarks they have established for monitoring progress on Palestinian Authority curriculum reform in light of President Abbas’ letter to President Macron and the UK–Palestinian Authority Memorandum of Understanding; and what assessment they have made of the implications for UK–Palestinian Authority cooperation should the Palestinian Authority fail to deliver the curriculum reforms it has committed to.
Answered by Baroness Chapman of Darlington - Minister of State (Development)
I refer the Noble Baroness to the answer I provided on 27 November to Question HL11630.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Ministry of Housing, Communities and Local Government:
To ask His Majesty's Government what the barriers would be to local authorities (1) taking contribution holidays while their pension schemes are in significant surplus, and (2) using the money that would otherwise have paid employer pension contributions to fund local services.
Answered by Baroness Taylor of Stevenage - Baroness in Waiting (HM Household) (Whip)
Contribution rates for employers in the Local Government Pension Scheme are set every three years as part of a valuation process, where Pension Funds will work with actuaries and employers – including local authorities – to determine a rate which is sustainable for employers and will allow the Fund to pay out pensions in the future.
The 2025 valuation is underway, which will set contribution rates for the three years from 2026-27. Pension contributions are paid for from local authorities’ general fund and there is no ring-fenced funding stream. This means any reduction in contributions may allow for greater budget flexibility to provide local services.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what estimate they have made of the impact of specifically levying (1) 10 per cent or (2) 20 per cent on unused pensions at death, instead of requiring the pension fund to be administered as part of the person's estate for inheritance tax purposes.
Answered by Lord Livermore - Financial Secretary (HM Treasury)
Most unused pension funds and death benefits payable from a pension will form part of a person’s estate for inheritance tax purposes from 6 April 2027. This removes distortions from changes that have been made to pensions tax policy over the last decade, which have led to pensions being openly used and marketed as a tax planning vehicle to transfer wealth, rather than as a way to fund retirement. These reforms also remove inconsistencies in the inheritance tax treatment of different types of pensions.
A flat rate tax charge would be a very different policy with very different impacts. Fewer than 10% of estates annually are forecast to have an inheritance tax liability in the coming years. A flat rate tax charge on pensions would impact a different, and large, population of individuals below the current inheritance tax thresholds. This approach would not be equitable as it would require the majority of estates to pay more so that a small share of estates could pay less.
If the flat rate is set at a lower rate than the current rate of inheritance tax, this would lead to unused pension funds being taxed more lightly than other assets subject to inheritance tax at a rate of 40%. This would likely mean that pensions would continue to be used as a tax planning vehicle for the wealthiest individuals.