Member

Finally, Amendment 174 would require the Government to explain why asset allocation powers would apply only to auto-enrolment default funds and to consider whether this approach risks unintended market distortion or a reduction in member choice. Let me try to provide that explanation to the noble Viscount. The first question is: why focus on default arrangements. This is about the key role that default arrangements play in auto-enrolment. Because auto-enrolment has brought millions of new people into these arrangements, it is therefore crucial, if we want them to save more money, that we make sure that the system has a clear responsibility to ensure that their savings will work properly for them, delivering better long-term returns and greater diversification. That is the reason for that focus.