Pension Schemes Bill

Helen Whately Excerpts

Wednesday 22nd April 2026 Commons Chamber

[Helen Whately (Faversham and Mid Kent) (Con)]

What a difference a week makes. When the hon. Gentleman rose to conclude our debate last Wednesday, he delivered from the Dispatch Box what I can only describe as a tirade. Serious and considered concerns—not just from me and my hon. Friends, but from noble Lords and many respected people across the industry—were met with accusations. We were told that those concerns were “nonsense on stilts”. He said that I had been “infected” by my party. If by that he meant that I have strong opinions—that I believe in a smaller state because Governments do not have all the answers and often need to get out of the way—then I must break the news to him that I have held those views for many years. I came to Parliament after a career in business. I knew my views then, and I still know them now.

Last week I thought that the Minister could and should do better, and I am glad that since then he has. His tone has shifted, and I am grateful for the discussions he has had with me and my team. His engagement has been constructive, and we have indeed made progress.

Turning to the amendments tabled since our last debate, I first welcome the Government’s commitment on the local government pension scheme. A faster and wider review of the triennial valuation by the Government Actuary’s Department is sensible and significant. If the review is to be meaningful, it must focus on what actually drives employer contribution rates, and we welcome that the Government have now recognised that.

Secondly, the Government have committed, in their amendment in lieu of Baroness Neville-Rolfe’s amendment 77, to examine the costs and sustainability of public sector pensions. That too is welcome. That review should consider questions of intergenerational fairness, long-term sustainability and how best to protect the benefits already promised to people, particularly at a time when demands on the state are rising and taxpayers are being asked to contribute more than ever.

--- Later in debate ---

[Liam Byrne]

I rise to say a couple of things in support of the Minister, who not only has done a heroic job in laying out the intellectual architecture for the legislation before he got to the House, but is so expertly steering it through the House. I wish him all the very best this afternoon in finishing the job.

I want to make three points. First, the measures that the Minister has set out are essential if we are to pursue the long-term interests of pension savers in this country. It is in their fundamental interests that they live and retire in an economy that is growing faster in the years to come. The only way in which we can collectively achieve that is by raising the investment rate in this country. For a long time, our investment rate was the lowest in the G7; it is improving and is now the second-lowest in the G7. It is for exactly that purpose that hon. Members on both sides of the House made the argument that we need to repatriate investment saving.

The fact is, we have got to resolve the paradox that, on the one hand, we have £3 trillion-worth of pension savings and, on the other hand, while we have some of the world’s best life science, best universities and best entrepreneurs, we do not have the investment institutions and systems that connect long-term savings to that brilliant tradition of entrepreneurial genius. Unless we fix that long-standing paradox, this country will not grow faster. That is not a Labour analysis; it is an analysis that was first advanced by the former Conservative Chancellor, the right hon. Member for Godalming and Ash (Sir Jeremy Hunt).

If we manage to get that right, the investment rate in the country will go up and the economy will grow faster in the years to come. Therefore, there is not a cost to the savings of Britain’s pension savers—it will actually be to their advantage.

[Helen Whately]

As I think the right hon. Gentleman will have heard in my speech, there is widespread agreement that we want to see more investment by pension funds in the UK; the debate is about whether mandation is the way to achieve that. Actually the Minister’s main argument for the mandation powers is not about investment in the UK; it is about solving a collective action first-mover problem in trying to improve returns and the risk that that will put up costs to pension funds and for savers. That is what he’s really arguing, rather than the point made by the right hon. Gentleman about investment in the UK.

[Liam Byrne]

I am grateful for that intervention, because the hon. Lady made my second point for me. It is just not good enough to will the ends and not the means. The reality is that, after all the heroic work of the former Conservative Chancellor, built on ably by the current Chancellor of the Exchequer to advance the Mansion House accord and the Sterling 20, the repatriation of long-term savings into our country is going at a snail’s pace. If we want to deliver it by a timetable on which we are both agreed, we will need to give a little bit of encouragement to the industry. That is exactly what the Minister’s proposed provision would do.

--- Later in debate ---

[Torsten Bell]

I fear the hon. Lady has not sat through enough of these sessions. Earlier, those on her own Front Bench engaged exactly with some of the arguments that I have made, explaining exactly the points she has raised. I will just say that she should go and have a look at what Australian pension schemes are doing investing in UK infrastructure and go and look at what is happening when US investors are investing in UK venture capital. Why is that happening? It is not because of differential tax breaks—there are very strong tax incentives. No, it is because of a history of not having the collective action problem that we have set out, and the fact that those on the Conservative Front Bench do not wish to engage with that is holding us back.

[Helen Whately]

On the ABI report that he referred to—he has referred to it before—yes, the ABI has agreed with the diagnosis of the problem, as I set out, as a collective action problem. However, it does not agree with mandation as the remedy. The Minister needs to be clear about that.

[Torsten Bell]

The truth is that there is a range of opinion among ABI members about that. However, there is agreement across the industry about the need to deliver change.

I turn to some of the comments made by the hon. Member for Torbay (Steve Darling) who, again, kindly did not refer to the Lib Dem manifesto, which called not just for reserve power, but for the direction of pension scheme assets into certain asset classes. I gently say that it is a shame to not see him engage with the substance, rather than taking the easy option of offering high-level, throwaway comments about a thing that he had in his own manifesto. On the plus side, however, he is right to say that the investment pipeline is important. The issue there is that that is different in different sectors. Within the infrastructure sector, it is obviously about having a country that is delivering actual infrastructure. Within venture capital, it is about making sure that there is easier intermediation for pension schemes into a market of which they have less experience. We are doing exactly that and that is what the Sterling 20 process is doing. I see very good engagement between pension schemes right across the board on that and every chief executive I speak to is engaging with exactly those questions that the hon. Member for Torbay raises.

The Bill has received detailed scrutiny over the past year, and it is a better Bill for it. We have brought forward amendments that, subject to delivering the core pension reform programme of the elected Government, respond to the detailed points raised by peers in the other place. With those improvements, this is a Bill that industry worker representatives and charities wish to see passed into law. The TUC said:

“It’s vital the Bill is passed so workers can start to benefit.”

Age UK has said the measures in the Bill will help both the pensioners of today and the pensioners of tomorrow. It is important that these can be implemented as soon as possible. Aviva welcomed today’s amendments and said:

“We hope this is enough to build the consensus needed for the Bill to be passed”.

The ABI has said that it and its members are

“clear that we want the Bill to pass”.

They are right, and I commend the Government’s position to the House.

Question put.

--- Later in debate ---

That this House insists on its disagreement with Lords amendments 77 and 85 but proposes amendments (a) to (c) in lieu.—(Torsten Bell.)

[Helen Whately]

On a point of order, Madam Deputy Speaker. The last Division we voted on was on a motion proposed by the Government that grouped a series of amendments with which we agreed, alongside amendments on mandation, with which we had strong disagreements. What steps can be taken to bring about a separate Division on the mandation clauses, with which we disagree?

[Madam Deputy Speaker (Judith Cummins)]

I thank the hon. Member for her point of order. The content of the motions is a matter for the Government. I can reassure her that they would not have appeared on the Order Paper unless they were in order. Those on the Government Front Bench have heard what she has said. If she would like any further advice on procedure, I recommend that she contact the Public Bill Office.