Pensions Dashboards (Prohibition of Indemnification) Bill

Mary Robinson Excerpts

2nd reading
Friday 15th July 2022 Commons Chamber

[Mary Robinson (Cheadle) (Con)]

I beg to move, That the Bill be now read a Second time.

This is a simple yet important measure designed to safeguard the interests of pension savers, but before going into the detail about precisely what my Bill would achieve, it may be worth while to provide some context about what pensions dashboards are and the work that the Government are doing to make them a reality. Pensions dashboards are an electronic communications service that will revolutionise the way people interact with their pensions by allowing individuals to see their pensions information, including the state pension, in one place online—at the touch of their laptop, smartphone or tablet. Dashboards will help individuals be reunited with their lost or forgotten pensions, and support people in better planning for their retirement.

An important point to mention is that while users will be able to view their pensions, they will not be able to make transactions, so they would not be able to combine or move pension pots within the dashboard. That is because, in order to introduce dashboards as soon as possible, they will start with a basic level of information, but they will include more detail as our understanding of consumer needs develops. The Government believe that to develop a digital service that is safe, useful and relevant to consumers, future enhancements to dashboards’ functionality should not be decided before the initial offer has been tested with users and any behavioural effects are understood.

Delivering pensions dashboards was a manifesto commitment of this Government, but the idea of a pensions dashboard has received widespread support from Members across the House, and it is not hard to see why. With the success of automatic enrolment, millions more are saving for their retirement and may have multiple pension pots, with no easy way of keeping track of them. Dashboards will bring pensions into the 21st century, and make it as easy for people to review their pensions savings as it is to view their bank accounts on their phones.

The Government are keen to see dashboards available as soon as possible to help consumers plan for their retirement. However, it is important to get the design of the service right to ensure that it is accurate, secure and consumer-focused. Developing a comprehensive service that can cater for the potential 52 million UK adults who could use dashboards, involving data from thousands of pension schemes, is complex and should not be rushed. The Government have, however, made excellent progress to make pensions dashboards a reality. The Money and Pensions Service has established the pensions dashboards programme team to design and implement the digital infrastructure that will make pensions dashboards work. The programme is on track and continues to move forward at pace, with work ongoing on the build of the central digital architecture, and research and testing to feed into the design and development of the service.

Hon. Members may recall our voting at the beginning of this Parliament to pass what is now the Pension Schemes Act 2021, which provided the primary legislative framework to make pensions dashboards possible. The Department for Work and Pensions has since consulted on the draft Pensions Dashboards Regulations 2022, which will apply to relevant occupational pension schemes, and the Government have this week published their response to that consultation. The Financial Conduct Authority has also consulted on equivalent rules for personal and stakeholder pensions to ensure that the information provided on dashboards will be comprehensive.

There will be a dashboard service provided by the Money and Pensions Service, which will launch first. That is because the Government believe very strongly in the importance of a Government-backed, impartial dashboard, and are committed to having the MaPS dashboard available from the start. In addition, it will then be possible for others to enter the market and provide dashboards, which will be bound by requirements set out in regulations and regulated by the Financial Conduct Authority. That will provide scope for innovation, helping to engage a broad range of users and meet the varied needs of the millions of people with pensions savings. Importantly, individuals will see the same information regardless of which dashboard service they use, and robust rules will be in place to ensure consumers’ interests are at the forefront of all dashboards.

Ensuring that user data is properly secured on the dashboards will be a significant consideration. The Government have taken care to ensure that pensions dashboards and the technology behind them are designed to maximise data security. For example, individuals will always have control over who has access to their data and will be able to revoke access at any time. Only the Money and Pension Service and any qualifying pensions dashboard providers that meet the agreed standards and regulatory requirements will be able to connect to the dashboard infrastructure. The draft regulations will require occupational pension schemes to connect to a central digital architecture that is being developed by the pensions dashboard programme.

Once connected, schemes will be expected to respond to requests by members of the public to find and view their pensions information. To ensure these requirements are adhered to, the regulations will enable the Pensions Regulator to take enforcement action through penalty notices against trustees or managers who fail to comply. That could result in penalties for each breach of £5,000 for individuals or £50,000 if the person is a body corporate, including corporate trustees. This is where my Bill comes in.

Although pensions scheme members may be able to take civil action, nothing currently in legislation prohibits rogue trustees or managers from using a pension scheme’s assets to reimburse themselves to repay fines they incur for breaches of pensions dashboard legislation, which is backed by criminal sanction. This Bill makes changes to pensions legislation to increase protection for savers against the actions of such unscrupulous persons. In particular, it provides additional powers for criminal proceedings to be brought against trustees or managers of occupational pension schemes if they reimburse themselves from pension pots to pay penalties imposed for compliance breaches under the future pensions dashboard regulations. If a trustee or manager is found guilty of this offence, the provisions would allow for a maximum sentence of up to two years in prison or a fine or both.

I should make it clear to the House that this Bill does not impose any new costs or requirements on occupational pension schemes or their sponsoring employers. The intent is simply to deter rogue actors who have already received a financial penalty from the Pensions Regulator under the dashboards regulations from plundering savers’ pension pots to pay the penalty. It is also not something that anyone in the pensions industry should be unfamiliar with. The Bill amends existing legislation that provides for a similar prohibition in several other areas of pensions legislation, including automatic enrolment.

I am delighted that the Bill has the Government’s support, and I look forward to continuing to work with them to secure its passage. As I said at the start, this is an important measure that will safeguard the interests of pension savers from any would-be unscrupulous trustees. I hope we all agree that this Bill would provide worthwhile protection to all of our constituents with pension savings, and I hope that it will be supported on both sides of the House today.

--- Later in debate ---

[Mary Robinson]

With the leave of the House, Madam Deputy Speaker, I thank all Members for their contributions and for being present for this important debate. Let me begin my thanking my hon. Friend the Member for Broxtowe (Darren Henry), who rightly described the pensions dashboards as brilliant, and acknowledged their potential to enable people to find the various pension pots that they may have acquired during their working lives. So many people who have lost or forgotten pensions and simply do not know where to go will be helped by this groundbreaking legislation.

I thank the shadow Minister, the hon. Member for Westminster North (Ms Buck) for her support: she was right to recognise the importance of good, well-run pension schemes. I thank the Minister for his support, and I thank the DWP officials for their assistance in preparing the Bill and for helping me to present it to the House today.

As we move forward with the pensions dashboard, I am glad that we can also put in place the provisions that we will need to protect hard-working people and their savings. The Bill is intended to safeguard people’s pension savings, and I hope it will be able to progress with the support of the whole House.

Question put and agreed to.

Bill accordingly read a Second time; to stand committed to a Public Bill Committee (Standing Order No. 63).

[Madam Deputy Speaker (Dame Eleanor Laing)]

I congratulate the hon. Member for Cheadle (Mary Robinson) on achieving a Second Reading for her excellent Bill.

Pensions Dashboards (Prohibition of Indemnification) Bill

Mary Robinson Excerpts

Committee stage
Wednesday 26th October 2022 Public Bill Committees

[The Chair]

With this it will be convenient to consider clause 2.

[Mary Robinson (Cheadle) (Con)]

It is a pleasure to serve under your chairmanship, Mr Sharma. I am grateful to you and to Committee members for joining me to look at the detail of the Bill. I am particularly pleased to be joined this morning on the Committee by my hon. Friend the Member for Hexham, who in his many years as Pensions Minister played a pivotal role in the introduction of the pensions dashboard, and has supported the Bill from its inception.

This is a simple Bill with just two clauses, but its purpose is to safeguard the interests of pension savers, which I think we can all agree is an important and worthy cause. The need for the Bill arises from the fact that there is currently nothing in legislation backed by a criminal sanction that specifically prohibits rogue trustees or managers from using a pension scheme’s assets to reimburse themselves and to repay civil penalties that they incur for breaches of pensions dashboard legislation. The Bill addresses that problem. It is welcome to have not just Government support for the Bill but, I hope, support from Members on both sides of the Committee. I noted that on Second Reading the hon. Member for Westminster North (Ms Buck) said:

“It should never be the case that mistakes, failures or a lack of action to meet legal requirements on the part of trustees should land with scheme members.”—[Official Report, 15 July 2022; Vol. 718, c. 659.]

I agree wholeheartedly with that point, which explains in a nutshell why I introduced the Bill.

Before going on to the specific detail of the Bill, it is worth briefly recapping some of the broader context about what pensions dashboards are, and the work that the Government are doing to make them a reality. Pensions dashboards are an electronic communication service that will allow individuals to see their pensions information, including the state pension, in one place online. With the continued success of automatic enrolment, millions more are saving for their retirement, and so may have multiple pension pots with no easy way of keeping track of them. Dashboards will help individuals to be reunited with lost and forgotten pensions. They will also support people in better planning for their retirement, making it possible for people to review their pensions savings online in the same way that people might currently view their bank accounts, whether on their phone or laptop at home.

There will be an online dashboard provided by the Money and Pensions Service. Additionally, to help to cater for the varied needs of the millions of people with pensions savings, it will also be possible for other organisations to provide dashboard services. Those organisations will be regulated by the Financial Conduct Authority, which will soon consult on a regulatory framework and rules for pensions dashboard operators. Individuals will see the same information regardless of which dashboard they use.

Importantly, the technology behind pensions dashboards has been designed with the security of data at its heart. Crucially, pensions information is not stored in any central database. It will continue to be held only by the pensions schemes themselves or by a third party administering the data on their behalf, and will be displayed only at the request of the individual. Individuals will always have control over who has access to their data and will be able to revoke access at any time.

I know that the Government are committed to ensuring that pensions dashboards become a reality as soon as possible. Even since I spoke on Second Reading of the Bill in July, much progress has been made. Only last week, the Pensions Dashboards Regulations 2022 were laid before Parliament and will be the subject of affirmative debates in due course. That is a huge milestone, because those regulations will require trustees and managers of occupational pension schemes to connect their schemes to the pensions dashboards digital architecture and provide information on request. I understand that the Financial Conduct Authority expects to confirm the final rules for personal and stakeholder pensions in the near future.

In the event of non-compliance with any of the requirements in part 3 of the Pensions Dashboards Regulations, the Pensions Regulator may, at their discretion, issue compliance notices, third party compliance notices and penalty notices. If the regulator chooses to issue a financial penalty, that can be up to a maximum of £5,000 in the case of an individual or up to £50,000 in other cases, such as corporate trustees.

That brings me neatly back to the contents of the Bill. Despite amounting to just two short subsections, clause 1 provides the real substance of the Bill. Committee members will see that subsection (1) simply adds section 238G of the Pensions Act 2004 to the list of statutory provisions in section 256(1)(b) of that Act. Section 256 of the Pensions Act 2004 prohibits any amount being paid out of the assets of an occupational or personal pension scheme for the purpose of reimbursing, or providing for the reimbursement of, any trustee or manager of the scheme in respect of a penalty they are required to pay under specific pensions legislation.

[Richard Graham (Gloucester) (Con)]

There may be some people listening to this debate who are unpaid trustees of pension funds and are concerned that these provisions will give them a huge potential liability. Will my hon. Friend confirm that many pension schemes have indemnity policies arranged through insurance companies, which will prevent that from happening, and this legislation will enforce the obligation on managers and trustees to ensure that the pensions dashboard is implemented?

[Mary Robinson]

I am grateful to my hon. Friend for making that point, because he is exactly right. It is worth reinforcing that we know that the overwhelming majority of people who take on the role of trustee want to do the best thing in the right way. This legislation reflects what is already in law, to ensure that financial penalties cannot be reimbursed from pension funds. It is important that we protect those savers’ pension pots.

Section 238 of the Pensions Act 2004 relates to the compliance provisions for pensions dashboards. The Bill extends an existing prohibition set out in section 256 of the Pensions Act to include penalties under the compliance provisions in the Pensions Dashboards Regulations and future regulations made under section 238G of the 2004 Act. As a result, if a trustee or a manager were to be reimbursed out of the assets of a pension scheme for a penalty issued under the Pensions Dashboards Regulations and knew or had reasonable grounds to believe they had been so reimbursed, they would be guilty of an offence, unless they had taken all reasonable steps to ensure that they were not so reimbursed, as I have said—that is so important that it was worth saying twice. On successful prosecution, that person would be liable to receive a sentence of up to two years in prison or a fine or both. Additionally, were any amount to be paid out of the scheme’s assets in contravention of this provision, the Pensions Regulator would have the power to issue civil penalties to any trustee or manager who failed to take reasonable steps to secure compliance.

Clause 1(2) makes a similar amendment to article 233 of the Pensions (Northern Ireland) Order 2005, essentially replicating the change that I have just described, so that the same prohibition on reimbursement using the assets of a pension scheme would also apply in Northern Ireland. It is entirely sensible to ensure that relevant pension members across the whole of the United Kingdom can benefit from the safeguards that the Bill provides.

Clause 2 sets out vital but standard information on how clause 1 is to be brought into legal effect, and the territorial extent of the two subsections in clause 1. The Bill has been drafted so that its respective protections extend to England, Wales and Scotland by virtue of amendments to the Pensions Act 2004, and to Northern Ireland by virtue of amendments to parallel legislation in Northern Ireland.

On commencement, clause 2 allows the Secretary of State to make regulations by statutory instrument to appoint a day for commencement in England, Wales and Scotland. It also enables the Department for Communities in Northern Ireland to make an order, by statutory rule, to appoint a day for commencement in Northern Ireland. That provides flexibility for the provisions to be brought into force at an appropriate time.

This is an important measure that will safeguard the interests of pension savers from any would-be unscrupulous trustees. On Second Reading, the Bill received cross-party support, and I hope it will continue to do so today.

--- Later in debate ---

[Alex Burghart]

I thank the hon. Gentleman for his intervention. We expect that, during the course of next year, all the requisite data will be pulled together from pension funds and assembled on the dashboard, and that the public will have access to it for the first time in the middle of 2024. As he says, it is major work, and it is important that we get it right. Through the passage of legislation such as this Bill, we will be able to ensure that our pensions system and dashboard are fit for the future. This is a major change, involving a great deal of work by a huge number of outfits, and it will make a major difference to the way people see and participate in the world of pensions.

The hon. Member for Blaenau Gwent had a further question about the FCA. Based on information gathered by sample providers, the regulatory impact assessment considers the costs of all relevant pension schemes and providers in scope of dashboards, connecting to the dashboard digital architecture and supplying pensions information. Although FCA-regulated personal and stakeholder schemes fall outside the scope of Department for Work and Pensions regulation, the Pension Schemes Act 2021 requires the FCA to make corresponding rules covering the requirements of these schemes in relation to pensions dashboards. Therefore, the impact assessment takes into account the costs for both these providers and the occupation scheme trustees.

I turn to the detail of the Bill. Clause 1, as my hon. Friend the Member for Cheadle said, will prohibit trustees and managers of occupational personal pension schemes from being reimbursed out of scheme assets in respect of penalties imposed on them for non-compliance with the pension dashboard regulations. That is obviously an important safeguard for pensions savers. It is achieved by amending section 256 of the Pensions Act 2004, under which if a trustee or manager were to be reimbursed or knew or had reasonable grounds to believe they had been so reimbursed, they would be guilty of a criminal offence, unless they had taken all reasonable steps to ensure they were not so reimbursed. We are talking about a serious crime. The provisions will allow for a maximum sentence of up to two years in prison or a fine or both.

Additionally, were any amount to be paid out of a pension scheme’s assets in such a way, the pensions regulator would have the power to issue civil penalties to any trustee or manager who failed to take all reasonable steps to secure compliance. Section 256 of the 2004 Act already prohibits reimbursement of penalties issued under a number of other pieces of pensions legislation, so the proposed amendment to the 2004 Act is a logical change that the Government welcome.

Clause 1 also makes corresponding changes to article 233 of the Pensions (Northern Ireland) Order 2005. As hon. Members know, all aspects of pensions policy are transferred to the Northern Ireland Assembly; however, there is a convention that the pensions legislation made in Northern Ireland stays in lockstep with that of England, Wales and Scotland, to ensure parity across the whole United Kingdom. The usual procedure in the instance of Parliament making provision of a transferred policy area would be to obtain a legislative consent motion from the Northern Ireland Assembly.

However, as hon. Members will be aware, the Assembly has thus far failed to elect a Speaker, so it is not in a position to grant this consent. I am pleased to say that Deirdre Hargey MLA, Minister for Communities in Northern Ireland, has written to the Department for Work and Pensions and confirmed that she would, in principle, be content to seek agreement for the provisions in the Bill to extend to Northern Ireland. That was, however, conditional on the agreement of a functioning Executive, but there will be further opportunity for this issue to be considered by the Assembly if the current impasse in Northern Ireland is resolved before the Bill has completed its journey through Parliament.

Clause 2, as my hon. Friend the Member for Cheadle stated earlier, sets out the standard information needed for all Bills and includes detail of how provisions will come into force and their territorial extent. The Government are committed to protecting pensions savers and agree that the safeguards in the Bill provide a welcome deterrent against rogue trustees or managers exploiting pension assets for which they are responsible. We commend the Bill to the Committee.

[Mary Robinson]

I thank the Minister for his remarks and am pleased his voice held out. I thank all Members here for their support, in particular the Minister, who has had a short time to become familiar with this subject. I also thank the officials for their invaluable support over the past few months. I thank my colleagues for their contributions and for being here to support the Bill.

As my hon. Friend the Member for Erewash said, this is about protecting our financial futures, and it is a very worthy cause. It is important for the up to 52 million people the Bill will cater for. My hon. Friend the Member for Gloucester rightly pays tribute to the former Minister for Pensions, my hon. Friend the Member for Hexham, who has done so much over the years and has been pivotal in everything he has brought to this place.

[Alex Burghart]

I am worried that I did not pay fulsome enough tribute to my predecessor in my speech. Stepping into a large brief such as this is a daunting exercise, but to have handed over to me such a well-ordered series of policies and such a clear sense of direction is a testament to the work he did over five years. As my hon. Friend the Member for Gloucester said earlier, there have probably been no Ministers who have held the brief for so long or have done so much to contribute to this essential part of the way we support citizens in later life.

[Mary Robinson]

I am grateful to the Minister, as I know everyone here will be. He has succinctly echoed all our thoughts. My hon. Friend the Member for Gloucester also said he thought it was the shortest and least contentious of Bills, but I hope it is one of great importance to millions of pension savers. I commend the Bill to the Committee.

Clause 1 accordingly ordered to stand part of the Bill.

Clause 2 ordered to stand part of the Bill.

Bill to be reported, without amendment.

Pensions Dashboards (Prohibition of Indemnification) Bill

Mary Robinson Excerpts

3rd reading
Friday 20th January 2023 Commons Chamber

[Mary Robinson (Cheadle) (Con)]

I beg to move, That the Bill be now read a Third time.

The Bill is a simple yet important measure designed to safeguard the interests of pensions savers. It will help to ensure that unscrupulous trustees or managers of pensions schemes do not help themselves to the hard-earned savings of pension scheme members to reimburse themselves for penalties incurred under the pensions dashboard regulations. I am proud to have brought the Bill before the House and delighted to have received support from the Government for it. I am proud to have brought the Bill before the House and I am delighted to have received support from the Government for it, confirmed by the Minister for Employment, my hon. Friend the Member for Hexham (Guy Opperman) on Second Reading and reconfirmed by the then Under-Secretary of State for Work and Pensions, my hon. Friend the Member for Brentwood and Ongar (Alex Burghart) in Committee. I thank them both profusely for their support.

I welcome the new Minister, my hon. Friend the Member for Sevenoaks (Laura Trott) the Parliamentary Under-Secretary of State for pensions and financial inclusion, to her place and hope that she will confirm that I have a hat-trick of support from pensions Ministers. The cross-party support throughout the passage of the Bill was also extremely welcome, and I hope that that will continue.

For the benefit of those that were not present for the previous stages of the Bill, I will give a brief recap of its policy background and purpose. Millions more people are now saving for retirement, thanks to the success of automatic enrolment, but as people change job roles throughout their career it can become difficult to keep track of multiple pension pots. Likewise, when people move home, updating their addresses with various pension schemes is not always the top priority, so pension schemes might not have up-to-date contact details for many of their members.

We know that many people have little idea how much they have saved for retirement. Pensions dashboards are an electronic communication service that will help to solve those problems. They will revolutionise the way people interact with their pensions by allowing individuals to see pensions information online, including the state pension, in one place, at the touch of their laptop, smartphone, or tablet. Dashboards will help to reunite individuals with their lost or forgotten pensions and support people in better planning for their retirement.

The Money and Pensions Service, an arm’s length body of the Department for Work and Pensions, will provide a dashboard service. Additionally, to help to cater for the varied needs of the millions of people with pensions savings, it will also be possible for other organisations to provide dashboard services. Those organisations will be regulated by the Financial Conduct Authority, which is currently consulting on rules for pension dashboard operators.

Importantly, the technology behind pensions dashboards has been designed with data security at its heart. Pensions information will not be stored in any central database and will continue to be held only by the pension schemes themselves, or by a third party administering the data on their behalf. Pensions information will only be displayed at the request of the individual. Individuals will retain control over who has access to their data, and will be able to revoke that access at any time.

Following parliamentary approval in November last year, the pensions dashboard regulations came into force on 12 December. The regulations set out requirements for occupational pension schemes to be connected to a digital ecosystem, which will enable the provision of pensions information at the request of a pension scheme member. In the event that trustees or managers do not comply with the requirements of the pensions dashboard regulations, there are powers for the pensions regulator to take enforcement action, including the power to issue penalty notices. Those penalty notices could be up to £5,000 for each breach in the case of individuals, or up to £50,000 in other cases, such as corporate trustees.

However, there is nothing currently in legislation to prohibit trustees or managers from being reimbursed for those penalties using the assets of the pension scheme. It is certainly not right in my view that ordinary pension scheme members should have to foot the bill for failures by trustees to meet the legal requirements.

[Simon Baynes (Clwyd South) (Con)]

Will my hon. Friend clarify whether the dashboards have come into reality yet, or is it just that the regulations are in place and we expect the dashboards to become a reality shortly?

[Mary Robinson]

I thank my hon. Friend for that question. I share his eagerness for the dashboards to be put in place. The regulations are there and the building of the digital ecosystem has been happening. One key part is that the dashboards must be secure, and that is complex. The expectation is that, from 1 April, pension schemes will be able to and be expected to start to connect with the dashboard system, and their ability to do that will run through until, I believe, October 2025. The Minister will clarify those points. I share his enthusiasm, and we want to get the dashboards going as soon as possible.

I am pleased to say that the problems I have highlighted are being solved and addressed by the Bill. It provides powers for criminal proceedings to be brought against trustees or managers of occupational pension schemes if they reimburse themselves from pension pots to pay penalties imposed for compliance breaches under the dashboard regulations. If a trustee or a manager is found guilty of that offence, the provisions would allow for a maximum sentence of up to two years in prison, a fine, or both.

As I said on Second Reading, the Bill does not impose any new costs or requirements on occupational pension schemes or their sponsoring employers. Section 256 of the Pensions Act 2004 already prohibits reimbursement for penalties incurred under a number of other areas of pension legislation. The Bill will simply extend that prohibition to include pensions dashboards. I hope we can all agree that this is an uncontentious measure that is worthy of our support. I look forward to its making progress through the other House.

[Simon Baynes (Clwyd South) (Con)]

I thank my hon. Friend the Member for Cheadle (Mary Robinson) for bringing the Bill before the House. As with other Bills that we have considered today, it is astonishing that its requirements even need to be made—pension trustees or managers using scheme assets to reimburse themselves and repay civil penalties is, in any situation, an extraordinary concept. The Bill will be righting a potential wrong, which is extremely important.

Before I came to this place, my background was in the financial services industry. When I was a county councillor in Powys, I was a member of the pensions and investment committee. I have also had considerable experience of acting as a trustee to various charities, overseeing their financial affairs. So, from my point of view, this is a subject of particular interest.

My hon. Friend made the vital point about how pension dashboards, as an electronic communication service, will allow individuals to see their pensions information—including their state pension—in one place online. I am pleased to hear that we are not far off pension schemes being connected to the technology—that is from 1 April—and that they will have until October 2025 to be, I presume, fully up and running. Anything that can be introduced that demystifies the pension world and makes information more accessible to people is vital.

My hon. Friend made two other points about the dashboards, one of which was about uniting people with lost pensions. That might sound peculiar to some, but those who have been in different employments will have been members of different pension schemes and companies—parents may have set up a pension for them—and so on. That is therefore a much more important point than it might appear at first sight.

My hon. Friend’s second point was about better help in retirement in general. At a time when inflation and interest rates are high, and the cost of living is difficult for people, the pensions issue could not be more important. With prices going up sharply, anything that we can do to help people in retirement on a static income, or an income that is not growing much, is vital.

I am delighted that the pensions Minister, my hon. Friend the Member for Sevenoaks (Laura Trott), is present; she is a true champion of the pensions industry and an expert on the subject. I have heard her speak on the subject on several occasions. The point of my hon. Friend the Member for Cheadle about automatic enrolment is extremely pertinent, because the whole pensions industry has been transformed in recent years, particularly under the Conservative Government, so more people are involved in it. The ability to have pensions dashboards as an electronic communication is therefore vital.

To go back to my original point, it is extraordinary that there is nothing in legislation, backed by a criminal sanction, to prohibit the trustees or managers from drawing on and reimbursing themselves from the pension schemes. As somebody who was involved in that industry, one way or another, for a long time, I could not imagine being on a board of trustees where anybody would ever consider doing that, but clearly it does happen. My hon. Friend’s point is that those are, potentially, substantial amounts of money. The financial penalty under the current non-compliance requirements in part 4 of the Pensions Dashboards Regulations 2022 is up to a maximum of £5,000 in the case of an individual or £50,000 in other cases, such as corporate trustees. So if those were to be reimbursed from the schemes, they would be substantial subtractions.

[Mary Robinson]

My hon. Friend is right to say that it is important that a trustee should not be able reimburse themselves from the scheme for any wrongdoing under any pensions legislation. In fact, under the Pensions Act 2004, some of those regulations are already in place. It appears from the Pensions Regulator that, until now, prosecutions and penalties have not been issued; I am sure that the Minister will want to clarify that. This is very much about having a deterrent when the dashboard is set up. The deterrent effect needs to be strong to ensure that those people, whose pensions are in the schemes and on the dashboard, are properly protected.

[Simon Baynes]

I thank my hon. Friend for that clarification. Indeed, the deterrent is vital, not only to ensure that the trustees and managers do not take that course of action, but to give a general sense of confidence in the schemes to everybody who contributes to them. As I said, I am very impressed by my hon. Friend for promoting the Bill, which has my wholehearted support as a Member of Parliament and as somebody with considerable experience of the industry. It is high time that we passed the measure.

--- Later in debate ---

[Mary Robinson]

With the leave of the House, Mr Deputy Speaker, I will take this opportunity to thank the Minister and Members on both sides of the House for their support throughout this process, and extend my appreciation and thanks to the Public Bill Office and officials from the Department for Work and Pensions for their guidance. It has also been brilliant to have cross-party support.

I thank my hon. Friend the Member for Clwyd South (Simon Baynes), who has great experience of dashboards and really knew the subject; my hon. Friend the Member for North Devon (Selaine Saxby), who brought her experience on the Select Committee to the Chamber, and who spoke with wisdom and knowledge; and my hon. Friend the Member for Watford (Dean Russell), who spoke about the importance of transparency, which should be the key to so much that we do. My hon. Friend the Member for North Devon described dashboards as a “game changer”, and my hon. Friend the Member for North East Bedfordshire (Richard Fuller) spoke of the imbalance of knowledge between schemes and members. That imbalance is what we need to address now, for the sake of the 52 million people who will potentially benefit from the Bill.

Question put and agreed to.

Bill accordingly read the Third time and passed.

[Mr Deputy Speaker (Mr Nigel Evans)]

Congratulations, Mary Robinson.