Member

I will not talk in detail, but the noble Baroness, Lady Altmann, asked what the Government are doing to encourage productive finance. We agree that maturing schemes need to invest a growing proportion of funds in more secure assets, such as bonds. However, most schemes are investing more prudently than is required by the scheme funding arrangements, and the regime makes it clear that there is headroom within the system for additional productive investment. Even at significant maturity, there is flexibility for trustees and managers to invest a lower but still significant proportion of funds in more productive growth assets. This is another subject on which I am afraid the noble Baroness will have to be patient to hear what the Government wish to do.