Pension Schemes Bill (Second sitting)

Debate between Kirsty Blackman and Sarah Edwards

Committee stage
Tuesday 2nd September 2025 Public Bill Committees

[Kirsty Blackman]

Q Thank you very much for all your hard work on this, for your passion and for how articulate you are, particularly for those people that cannot be there and cannot make the case themselves. I really appreciate it. I absolutely agree with what you are saying on indexation; I think it is incredibly important. You were talking about the people that would benefit from these changes. Are they overwhelmingly well-off people, or are they people that are really struggling because of the lack of indexation, and who would therefore be more likely to spend the money and to grow the economy by spending their money, if the Government are worried about balance sheets?

Roger Sainsbury: I have to say that there is a great range.

Terry Monk: I cannot remember what it is, but the average FAS member’s pension is something in the order of £4,000 or £5,000 a year, and if you look at the steelworkers, because they are our example, it is those sorts of guys. I worked in the City. I had a different job, but the majority of the people in the scheme had good benefits and good salaries but their pensions were important and they reflected the role they had in their life. I am not sure off the top of my head, but I think the average of the FAS pension is £4,500—some more, some less, obviously.

I want to make a point that I think Roger mentioned: at one stage, we were not at the table to talk as part of the pensions Bill. We lobbied hard. I know some of you have definitely put forward amendments to the pensions Bill to ensure that pre-1997 becomes part of the pensions Bill, which is why we are here today, but we had to work hard just to get that.

[Sarah Edwards]

Q I am interested in exactly what you were saying around the two-tier element, partly around the challenge of the fact that there are people who have got the full recompense or equivalent, and you have not. Do you feel that this is an opportunity to change that dial and set the record straight? Obviously, an amendment has been tabled. I recognise that; I just wanted to get a bit more from you on the fact that there are people who are in a completely different situation, and I just wanted you to build on that point that there are two sides to this. Some have not lost and some have.

Terry Monk: FAS stopped when PPF opened its doors in 2005, so most of the people in FAS did not have much opportunity to accrue any increasing benefits post 1997. The majority of them are old—the average age of the FAS member is now 73, which is much younger than I am. It is that age group of people who would really benefit, and their widows and their spouses—let us not forget them—and they would therefore spend money that they currently do not have to spend. They can afford their council tax. They can afford their heating. It would change their lives, in terms of feeling that they have achieved this success on their behalf and on behalf of the members.

Roger Sainsbury: I would like to talk a bit about the concept of an amendment. We have observed that one amendment has already been offered: new clause 18 suggested by Ann Davies MP. Our team and I have had a bit of a look at that in the last couple of days. While we very much appreciate her good intention in putting the amendment forward, it actually does not do the job in a number of respects. I do not know how many of you have ever grappled with the obscure and complex language of schedule 7 to the Act, but it is mighty complicated. Some time ago, I and my team spent several days trying to work out what an amendment should be to deliver what we wanted. I have got some first class people on the team, but in the end we decided we actually could not do it, and would have to leave it to the expert drafters in the Department.

That is yet another reason why—I mentioned it in the written evidence—at a meeting I have already asked the Minister if he would himself table the requisite amendment. When you come up against the sheer complexity that Ann Davies has obviously already come up against, this is another reason why we think that would be a very good idea. It is slightly unusual for a Minister to table an amendment to his own Bill, but it is permitted, as the Minister said when I was talking to him about it. In a complex situation like this, it would absolutely be the best way of getting straight to the desired answer, so I plead with all of you to join me in urging the Minister to take this on.