Pension Schemes Bill

Steve Darling Excerpts

Consideration of Lords message
Tuesday 28th April 2026 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Steve Darling (Torbay) (LD)]

The Liberal Democrats have opposed mandation from day one, and we have continued to oppose it throughout the passage of this Bill. The challenge is that once we cross the Rubicon, we change the dynamics of pensions significantly. Crucially, people need to have confidence that contributing to pensions is a good way of saving for their retirement. If we undermine that through Government interference, it will reduce people’s confidence in saving for their pensions. That would be a complete reversal of what this Bill is all about, because it is mostly about making sure that our pension system is fit for the future and fit to serve those who are looking to have a good retirement. That is to be celebrated, and the vast majority of this Bill is to be welcomed. However, although the Liberal Democrats welcome the significant concessions—those steps in the right direction—the Rubicon has still been crossed. We continue to have grave concerns.

[Mark Garnier (Wyre Forest) (Con)]

The hon. Gentleman makes an incredibly important point about crossing the Rubicon, given that the Government are taking mandation powers to interfere in people’s savings and assets. We are talking about pension funds here, but once that Rubicon is crossed, there is no reason why the Government would not feel that they could start mandating how investment trusts or other types of savings schemes invest. This issue is not just about pensions; it is about the fundamental relationship between the state and private individuals.

[Steve Darling]

The hon. Gentleman makes a powerful point; I am sure that the Minister will reflect on it when winding up. The Liberal Democrats continue to oppose mandation, and we plan to vote against the motion tonight.

[Torsten Bell]

I thank hon. Members for their contributions, and the shadow Secretary of State for her kind words.

I will be brief. The Government have continued to insist on the inclusion of the reserve power in the Bill in all rounds of discussions in this place because we have not heard a convincing alternative approach to solving the collective action problem that we have discussed. However, we have heard convincing arguments about how this part of the Bill can be strengthened, and we have acted on each of them. That is why the amended power is necessary but also constrained. It is capped, time limited, single-use, sunsetted and subject to a savers’ interest test that has been materially strengthened, as the shadow Secretary of State laid out.

The elected House has now been clear on many occasions, and has had large majorities. Given that, it is clear that this is the time to resolve the issue and get the Bill passed; that is what the industry and the groups supporting workers and pensioners have repeatedly called for. The Government have not only listened to the arguments from the Opposition and those in the other place, but acted on them. The elected House has also made its position overwhelmingly plain. Given both those points, both of which are important, it is clearly time for the unelected House to bring to an end attempts to frustrate the clearly expressed will of this Chamber. With that entirely reasonable expectation, I commend the Government’s amendments and the Bill to the House.

Question put.