Pension Schemes Bill

Baroness Sherlock Excerpts

Thursday 26th March 2026 Lords Chamber

[Viscount Thurso (LD)]

My Lords, my Amendment 6 is entirely consequential on the amendment your Lordships agreed to. I am very grateful to the Public Bill Office for its advice in helping me to correct this, and I will move it formally when the moment comes.

[The Minister of State, Department for Work and Pensions (Baroness Sherlock) (Lab)]

My Lords, the amendments here are minor and technical following Report, and the Government will not oppose them today. Amendment 4 in my name is also minor and technical. This amendment was tabled to correct an error concerning Amendment 178, which was moved by mistake on Report on Monday 23 March. As the noble Baroness, Lady Hayman, said, that amendment relates to the commencement of Amendment 156 on investment duties guidance, which was disagreed by the House. The amendment now removes the commencement clause to honour the usual channels’ agreement on the package, as it was a missed consequential amendment.

In response to the questions from the noble Baroness, Lady Hayman—I commend her on her work on this important issue—the Government introduced their amendments to this House to honour the commitment given by my honourable friend the Minister for Pensions in the other place. Since the House disagreed with those amendments, obviously that cannot proceed. They were removed from the Bill in this House. Therefore, the other place will not get to consider them again. However, she is right that the need for guidance and clarity does not go away.

The Government remain committed to improving clarity around trustees’ existing investment duties, including how schemes consider long-term and financially material factors such as climate and systemic risks, while maintaining their core duty to act in members’ best interests. We will press ahead with this important work. We are currently reviewing next step options to ensure this objective continues to be progressed in the most important way in the light of the decision of the House on this matter.

The technical working group, which was discussed at some length in our proceedings, bringing together legal, actuarial and investment experts, will continue to play a central role in helping government develop high-quality guidance and ensuring it is workable, proportionate and valuable to schemes. Further updates will be provided in due course. I hope that gives enough information; it is all I am able to say at the moment. In the meantime, Amendment 4 is a necessary step, and I hope the House will support it.

Amendment 1 agreed.

--- Later in debate ---

Moved by

[Baroness Sherlock]

4: Clause 137, page 156, line 33, leave out paragraph (f)
Member’s explanatory statement
This amendment corrects a mistake.

--- Later in debate ---

Moved by

[Baroness Sherlock]

That the Bill do now pass.

[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.