Baroness Sherlock (Lab)

My Lords, I am grateful to the noble Lord, Lord Palmer, for introducing his Amendments 216 and 218. Amendment 216 would require the Secretary of State to establish an independent review into injustices experienced by members of occupational pension schemes due to the actions or omissions of employers, scheme sponsors or scheme administrators. Amendment 218 would require the Secretary of State to establish an independent review into pension losses former employees incurred when AEAT went into administration and their scheme entered the PPF. Speaking to both amendments, the Government recognise the importance of pensions security in retirement, and member protections for those saving into pension schemes. We understand the hardship it can cause when people do not receive what they expect to receive in retirement. We also recognise the importance of strong member protections to ensure trust and confidence in our pensions system. Amendment 216 refers to injustices, but it does not define these, so the remit for such a review is potentially very wide and would be difficult to achieve. The Minister for Pensions has met with a number of representatives from schemes to ensure that their issues are heard. This Government have listened and are taking action. For mineworkers, the Chancellor announced in the 2025 Budget that the investment reserve fund of the British Coal Staff Superannuation Scheme will be transferred to its members. As covered in an earlier debate, the Government are also introducing increases in compensation payments from the PPF and the FAS that relate to pensions built up before 6 April 1997. This has been a concern for members of several schemes, including AEAT. I recognise the difficult position members have found themselves in and am pleased to say that members whose former schemes provided for these increases will benefit from these changes. We also recognise the importance of members having a route to raise concerns or complaints with their scheme when things go wrong. Where a member has a concern about a scheme that cannot be resolved through the internal dispute resolution process, they can go to the Pensions Ombudsman. Where its remit allows, the Pensions Ombudsman provides an independent, impartial service to resolve pension complaints and disputes, offering a route to settle issues fairly and ensure that members’ rights are upheld. The Pensions Regulator was set up to ensure that pension schemes and employers fulfil their duties to occupational pension scheme members. It makes sure that employers enrol their staff into a pension scheme and pay contributions into that scheme. It also makes sure that workplace pension schemes are run properly, so that people can save safely for their later years. Central government and regulators are working actively with industry representatives to identify scam activity and put appropriate safeguards in place to prevent scams. To avoid members becoming victims of scams, pension schemes must carry out due diligence on transfers. All sides of the House agreed the introduction of the Occupational and Personal Pension Schemes (Conditions for Transfers) Regulations 2021, introduced in November 2021. Those regulations limit a member’s statutory right to transfer if concerns are identified. In certain circumstances, the transfer will be paused, while in others, the transfer will not be able to proceed.