Pension Schemes Bill

Lord Davies of Brixton Excerpts

3rd reading
Thursday 26th March 2026 Lords Chamber

[Baroness Sherlock (Lab)]

My Lords, I am grateful to the House for its scrutiny of the Pension Schemes Bill. The Bill will make a real difference for people saving for their retirement. It will help their money to work harder by improving how pension schemes operate, reducing unnecessary costs and enabling larger, better-governed schemes to secure stronger long-term returns. It will also make pensions easier to follow by tackling the growth of small dormant pots, and it will give people clearer and more dependable support when they come to draw their pension so they can make choices that meet their needs. For those in defined benefit schemes, the Bill strengthens long-term security through a well-regulated superfund regime. It brings clarity to areas that have caused uncertainty for savers, including historic scheme alterations and support for those facing a terminal illness.

Taken together, these reforms help build a system that is easier to navigate, better run and more supportive of people as they move towards retirement. During the passage of the Bill, the House voted for amendments that the Government did not support. I can assure the House that we will reflect carefully on these as the Bill moves to the other place.

I thank noble Lords who have contributed to the debates. I thank the noble Baroness, Lady Stedman-Scott, the noble Viscount, Lord Younger, and the noble Lord, Lord Palmer, for their engagement throughout proceedings. I thank my noble friend Lord Katz, my Whip, for doing so much work on the Bill and being such a great source of support.

I am also grateful to all those who worked so hard on the legislation, including the excellent Bill managers, Jo and Amanda, for advice, encouragement and the provision of excellent cupcakes; our officials, Sam, Rob and Anna, and their brilliant teams; and my private office, especially Hussein and Ollie, who have worked incredibly hard and kept me upright, well briefed and organised as time has gone on. I beg to move.

[Lord Davies of Brixton (Lab)]

I am pleased that the Bill is to pass. It is a good and welcome Bill because it deals with administrative and bureaucratic complexities in the present system. I have to admit that it is not quite as good as it would have been if it had adopted some of the amendments I tabled in relation to people who were denied pre-1997 pension increases, and the release of surplus, but we have to accept that. I am therefore pleased that on Report my noble friend the Minister gave an assurance that the Government will closely monitor how the powers of surplus release will be used and will keep that very much under review. This was reinforced in the House of Commons Adjournment debate last Thursday, when the Minister for Pensions made clear the extent to which they will closely monitor how the Bill will be operated in the context of surplus release.