Member

In Committee, some noble Lords sought reassurance that any exemptions would be narrow and transparent, while not undermining the policy intent. That is the Government’s position and the reason why we cannot accept this amendment. It is so wide-ranging that it is not clear where the primary concerns lie. I think we broadly agree on the principles and benefits of scale, and the underpinning evidence base and impact assessment support this. It would not be in the interests of members and their retirement outcomes to prevent its delivery now. The regulators also continue to express concerns about the operability of this clause and the fact that it exposes them to risk of legal challenge. We do not want to end up in a situation where challenges are brought in court and take years to resolve. That is not an abstract risk and it will benefit no one, least of all members, who will be stuck in underperforming schemes.