Baroness Stedman-Scott (Con)

My Lords, it is beyond doubt that mandation is, rightly, the most serious and contentious issue in the Bill. We have made our views on this very clear, as have many other noble Lords. The state should not be directing the investment of assets held by private funds. The power that the Government are setting out in the Bill directly undermines the principle of fiduciary duty on which the entire pensions system relies. It must by now be plainly obvious to the Government and the Minister that any investment that has to be forced by the Government is not in the interest of savers. We are absolutely opposed to this power, in principle and in practice. We have met with many representatives from industry, including signatories to the Mansion House Accord, to which the Minister claims this power is designed to be a backstop. They have been crystal clear that this power crosses a line and must not proceed. We will support the noble Baroness, Lady Bowles, if she seeks the opinion of the House on this Motion. On Motion F1, the argument for scale exemptions is now well rehearsed and I will not repeat it today. Our amendment would preserve the policy intent and provide two clear and targeted routes through which a scheme may qualify—both tightly drawn and firmly anchored in member outcomes—that introduces a rigorous evidential threshold and places the responsibility firmly with the regulator, who must be satisfied not only that the conditions are met but that any claimed benefits are material and demonstrably in the interest of members. The Government committed through the Mansion House Accord to taking a pragmatic approach to scale. This amendment gives effect to that commitment. I put on notice that I will seek to test the opinion of the House on this Motion when it is called.