Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government which regulatory body oversees the actuarial profession in connection with advice to members, trustees and sponsors of Defined Benefit pension schemes and what mechanism there is for compensation for schemes or members who lose out as a result of negligent advice or failure to warn of all material risks to the pension scheme or its members.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The actuarial profession is regulated by the Institute and Faculty of Actuaries (IFoA) which is the relevant professional body. It is possible to raise a concern or complaint relating to an individual member of the IFoA directly to the IFoA.
The Actuaries’ Code is the ethical Code of Conduct to which all IFoA members must adhere. Failure by a member to comply with the ethical requirements set out in the Code may lead to disciplinary proceedings under the IFoA’s Disciplinary Scheme.
The Financial Reporting Council (FRC) is the oversight body for the actuarial profession, and this provides a further route for complaints about professional standards and conduct.
Where a pension scheme trustee, sponsoring employer or member believes they have suffered a loss as a result of negligent actuarial advice, redress would normally be sought through the courts under professional negligence or breach of contract.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what risk analysis have they conducted, or asked regulators to conduct, to stress-test the payments currently expected from the Financial Services Compensation Scheme, should one or more underwriter, reinsurer or supplier of life annuities or bulk purchase annuities become insolvent and be unable to meet all the long-term liabilities from its own resources; if so, what the results of the stress test were; and if not, whether they intend to commission such an analysis.
Answered by Lord Livermore
The Financial Services Compensation Scheme (FSCS) funds its compensation costs through levies on the financial services sector and recoveries against firms that have failed. As FSCS levies industry following payment of compensation or securing continuity for policyholders, it has the ability to borrow privately from a £3 billion revolving credit facility to meet short-term funding needs, with any lending repaid through levies. As a last resort, it can also request to borrow from HM Treasury, with any government borrowing also repaid through levies. This means that, even in the event of last-resort public financial support, the financial services sector will fund FSCS’s costs through a levy alongside recoveries.
Under rules set by the Prudential Regulation Authority (PRA), eligible life insurance policyholders – including customers of life annuity and bulk purchase annuity contracts – are 100% protected by the FSCS for any claims against an authorised insurer in the event that it fails. For a life insurance failure, levies would be payable by other life insurance and pensions providers.
The PRA sets the rules for policyholder protection including the FSCS funding of insurance compensation, including long-term insurance such as annuities. In doing so, it has rules in place to ensure FSCS can safely levy the insurance sector and meet its costs. The FSCS also closely monitors and regularly forecasts potential claims and compensation costs to ensure it can meet these within its available financial means. The PRA also conducts stress tests of life insurers, most recently in 2025.
Finally, FSCS also maintains contingency plans for a potential life insurance failure. These plans are subject to independent assurance through FSCS's assurance framework and are designed to support an effective and coordinated response, including engagement with regulators, firms and other stakeholders.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the Financial Services Compensation Scheme would pay out 100 per cent of all life annuity or bulk purchase annuity contracts, in the event that the annuity company or its underwriters or reinsurers were to fail and become unable to do so.
Answered by Lord Livermore
The Financial Services Compensation Scheme (FSCS) funds its compensation costs through levies on the financial services sector and recoveries against firms that have failed. As FSCS levies industry following payment of compensation or securing continuity for policyholders, it has the ability to borrow privately from a £3 billion revolving credit facility to meet short-term funding needs, with any lending repaid through levies. As a last resort, it can also request to borrow from HM Treasury, with any government borrowing also repaid through levies. This means that, even in the event of last-resort public financial support, the financial services sector will fund FSCS’s costs through a levy alongside recoveries.
Under rules set by the Prudential Regulation Authority (PRA), eligible life insurance policyholders – including customers of life annuity and bulk purchase annuity contracts – are 100% protected by the FSCS for any claims against an authorised insurer in the event that it fails. For a life insurance failure, levies would be payable by other life insurance and pensions providers.
The PRA sets the rules for policyholder protection including the FSCS funding of insurance compensation, including long-term insurance such as annuities. In doing so, it has rules in place to ensure FSCS can safely levy the insurance sector and meet its costs. The FSCS also closely monitors and regularly forecasts potential claims and compensation costs to ensure it can meet these within its available financial means. The PRA also conducts stress tests of life insurers, most recently in 2025.
Finally, FSCS also maintains contingency plans for a potential life insurance failure. These plans are subject to independent assurance through FSCS's assurance framework and are designed to support an effective and coordinated response, including engagement with regulators, firms and other stakeholders.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government whether the Financial Services Compensation Scheme is underwritten by any public body or Government department.
Answered by Lord Livermore
The Financial Services Compensation Scheme (FSCS) funds its compensation costs through levies on the financial services sector and recoveries against firms that have failed. As FSCS levies industry following payment of compensation or securing continuity for policyholders, it has the ability to borrow privately from a £3 billion revolving credit facility to meet short-term funding needs, with any lending repaid through levies. As a last resort, it can also request to borrow from HM Treasury, with any government borrowing also repaid through levies. This means that, even in the event of last-resort public financial support, the financial services sector will fund FSCS’s costs through a levy alongside recoveries.
Under rules set by the Prudential Regulation Authority (PRA), eligible life insurance policyholders – including customers of life annuity and bulk purchase annuity contracts – are 100% protected by the FSCS for any claims against an authorised insurer in the event that it fails. For a life insurance failure, levies would be payable by other life insurance and pensions providers.
The PRA sets the rules for policyholder protection including the FSCS funding of insurance compensation, including long-term insurance such as annuities. In doing so, it has rules in place to ensure FSCS can safely levy the insurance sector and meet its costs. The FSCS also closely monitors and regularly forecasts potential claims and compensation costs to ensure it can meet these within its available financial means. The PRA also conducts stress tests of life insurers, most recently in 2025.
Finally, FSCS also maintains contingency plans for a potential life insurance failure. These plans are subject to independent assurance through FSCS's assurance framework and are designed to support an effective and coordinated response, including engagement with regulators, firms and other stakeholders.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the HM Treasury:
To ask His Majesty's Government what protections are in place in the UK to ensure bulk purchase annuities are guaranteed to pay the promised pensions for the rest of each member's life.
Answered by Lord Livermore
Bulk purchase annuities are provided by authorised insurers and regulated by the Prudential Regulation Authority. This requires insurers to hold capital and manage risks so that they can meet their long-term obligations to policyholders.
Where a pension scheme secures members’ benefits through an insurance buy-out, responsibility for paying those benefits transfers from the scheme to the insurer. Eligible annuity policyholders are also protected by the Financial Services Compensation Scheme if an authorised insurer fails.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government, further to the Written Answer by the Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs on 20 January (HC104985) and the answer by the Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs on 3 March (HC Deb col 719), whether their assessment that the Palestinian Authority’s Grade 12 curriculum reforms demonstrated “considerable progress” was informed by the independent audit commissioned the Palestinian Authority; and if not, what evidence informed that assessment.
Answered by Baroness Chapman of Darlington
All education must promote peace, tolerance and non-violence. Any incitement to hatred or violence is unacceptable and has no place in the classroom. We have raised this with the Palestinian Authority (PA) and will continue to do so.
The PA is undertaking a multi-year curriculum reform in which textbooks are systematically being updated to align with UNESCO standards. Recent independent analysis has identified credible progress since 2018 in removing material of concern from PA textbooks. We welcome this initial progress, but we recognise that more needs to be done to bring every textbook page for every Grade in line with UNESCO standards.
We have made clear that the Palestinian Authority must fully implement the reforms they have committed to make, including in relation to the school curriculum, and will continue to support them to do so.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Foreign, Commonwealth & Development Office:
To ask His Majesty's Government, further to the answer by the Parliamentary Under-Secretary of State for Foreign, Commonwealth and Development Affairs on 3 March (HC Deb col 719), whether they still assess that the Palestinian Authority’s Grade 12 curriculum reforms demonstrated “considerable progress” in light of recent findings that newly issued Grade 12 textbooks continue to contain material promoting violence, martyrdom, and antisemitic narratives.
Answered by Baroness Chapman of Darlington
All education must promote peace, tolerance and non-violence. Any incitement to hatred or violence is unacceptable and has no place in the classroom. We have raised this with the Palestinian Authority (PA) and will continue to do so.
The PA is undertaking a multi-year curriculum reform in which textbooks are systematically being updated to align with UNESCO standards. Recent independent analysis has identified credible progress since 2018 in removing material of concern from PA textbooks. We welcome this initial progress, but we recognise that more needs to be done to bring every textbook page for every Grade in line with UNESCO standards.
We have made clear that the Palestinian Authority must fully implement the reforms they have committed to make, including in relation to the school curriculum, and will continue to support them to do so.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what progress they have made in (1) meeting, and (2) addressing the problems facing, the AEA Technology pension scheme members who have lost their final salary inflation uplifts and part of their pensions.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Minister for Pensions met with Viscount Thurso on 15 June to discuss AEA Technology as per the commitment made during the passage of the Pensions Schemes Act 2026.
We recognise the very real challenges that AEAT pension scheme members have faced given the insolvency of their employer and their entry into the Pension Protection Fund.
The Pension Schemes Act 2026 provides for annual increases on compensation payments from the Pension Protection Fund that relate to pensions built up before 6 April 1997, where schemes provided for this.
AEA Technology pension scheme members with pre-97 accrual will benefit from this change.
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 on levels of investment in UK companies of (1) requiring at least 25 per cent of all new pension contributions to be invested in UK companies, and (2) restricting the ISA allowance to cover only investments in UK companies.
Answered by Lord Livermore
The Government is committed to boosting investment in UK companies and regularly considers a broad range of proposals to achieve this.
The Government is focused on supporting an industry-led approach to increasing pension investment in a wider range of assets in order to deliver better outcomes for savers. This includes the Mansion House Accord, a voluntary commitment by major pension providers to increase default defined contribution pension scheme investment in private markets to 10 per cent, including 5 per cent in the UK.
At the Autumn Budget in 2025, the Chancellor announced a reduction in the cash ISA limit to £12,000 for people under the age of 65 to incentivise investment and deliver better returns for savers, to come into effect on 6 April 2027 We also welcomed the launch of the industry-led ‘Invest for the Future’ campaign to promote the benefits of investing to the public, and the industry-led review to reform how firms talk about the risks, and benefits, of investing.
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 that imposing inheritance tax on unused pensions will have on (1) the number of people aged 50–69 who withdraw money from their pension funds, (2) the adequacy of pension provision for younger people, and (3) the investment policy choices made by holders of defined contribution pensions and draw-down funds in later life.
Answered by Lord Livermore
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 resulting 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 address inconsistencies in the inheritance tax treatment of different types of pensions.
The Government will continue to incentivise pension savings for their intended purpose of funding retirement, with ongoing tax reliefs on both contributions into pensions and on the growth of funds held within a pension scheme. Pensions continue to benefit from very significant tax benefits, with gross income tax and National Insurance contributions relief costing £78.2 billion in 2023-24.
Estates will continue to benefit from the normal nil-rate bands, reliefs, and exemptions available. For example, the nil-rate bands mean an estate can pass on up to £1 million with no inheritance tax liability and the general rules mean any transfers, including the payment of death benefits, to a spouse or civil partner are fully exempt from inheritance tax. More than 90 per cent of UK estates will continue to have no inheritance tax liability in 2030-31 following these changes and the reforms will only affect a minority of those with inheritable pension wealth.