Baroness Altmann (Non-Afl)

My Lords, I will not detain the House too long on this amendment. It is a small amendment, but it is very important for members of pension schemes in auto-enrolment, particularly women. The proposal in the Bill is to move small pots, under £1,000, which are considered dormant—in other words, they have had no contributions paid in and no contact from the member with the provider for 12 months—to a consolidator scheme without member consent. My argument is simple: 12 months is simply not long enough to consider that a scheme that has not had contributions paid into it is dormant and that that member has no interest in the scheme. Imagine a woman, for example, who stops work for a period to care for loved ones or elderly parents, partners or children. They may stop contributions for quite a while longer than a year, but their pension could be moved if the provider had not been able to contact them, and their money would be put into a consolidator scheme approved by the regulator over which they had no control. Amendment 49 would extend the period before which somebody’s pot could just be taken away from one year to three years; and Amendment 50 would extend it to two years. This would give time for the Government’s correct aim of improving data accuracy to take place. We know that most pension schemes have huge errors in their data and do not always know even how to contact a member. It would also allow time for providers and trustees to trace members and for the pensions dashboard to start and members to be able to find their pots themselves. I understand that pension providers do not want these small pots and they may make a loss on them, but they should not just be able to get rid of them with such unseemly haste. I hope the Government may accept the spirit in which this amendment is meant, which is to protect members while obviously still allowing the pots to be moved once it is beyond doubt that they are indeed dormant. I beg to move.