Member

There was a question about the future, which was a helpful reminder from the noble Viscount, Lord Younger, that it may not be like the present and that we have to make sure that there is enough headroom for whatever happens down the line. The PPF published a review of its long-term funding strategy in 2022 and concluded that while the risk of schemes having to enter the PPF is decreasing, there are schemes which still pose risks. It said that the PPF expects that it will need to continue to build it reserves but at a reduced pace. It is worth remembering that there are still a number of risks ahead: of future claims of compensation because of employer insolvencies and of adverse investment experience and longevity risks requiring the PPF to pay more. To ensure its long-term stability and to fulfil its commitments to scheme members, the PPF must maintain a substantial reserve. However, I will make sure that the noble Lords’ comments are shared within the department and are considered carefully.