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Pensions Bill

Clause 9 recognises that individuals will need access to relevant and accurate information about the effect of the new employer’s duty in relation to them, and I shall begin by making it clear that the information prescribed under Clause 9 is over and above the information that will come from a scheme as this information is already prescribed in existing legislation. Regulations made under Clause 9 will set out what information must be given, under what circumstances, how and when it should be given, and by whom. We recognise, for instance, that individuals will need to know whether they are eligible for automatic enrolment, the name of the scheme they have been enrolled into, and their right to opt out and how that can be done. The Bill as drafted has been kept quite flexible because many of the decisions regarding who should provide what information have yet to be finalised. I know that this is a constant theme of our discussions and will continue to be so, but that is genuinely where we are. The Government want to ensure that individuals receive the right information at the right time and in the most appropriate format. We plan to build on existing information provision and complement current sources which include, as we discussed earlier, organisations such as citizens’ advice bureaux, the Pensions Advice Service and the Financial Services Authority. It would be premature to predict how we should best go about this without consulting widely. Under existing legislation, schemes already have to provide a wide range of information to prospective and active members. For example, prospective members will receive information to help them determine whether they might want to join the scheme, and active members are provided with a full annual illustration of benefits at retirement. The personal account scheme will be subject to the same legislation as any other money purchase occupational pension scheme and the Pensions Regulator will be responsible for information about how employers can discharge their new duties. It is expected that PADA will provide information to employers on the scheme. Employers will have a role in providing information to employees, not least what scheme they have been enrolled into and their right to opt out. However, as I have said previously, we are mindful of burdens on business and will bear this in mind when we make decisions about the most appropriate channels to use when providing information. We want to work with stakeholders to consider in more detail the appropriate person or body to deliver this information and to ensure that its delivery is customer focused and business friendly. Turning to the amendment tabled by the noble Lord, Lord Skelmersdale, this would remove the ability of the Secretary of State to prescribe who provides this information. Not prescribing who is responsible for providing what information would inevitably create uncertainty. I do not think that that was the intention behind the amendment but there is such a risk. We need to be sure that individuals are clear about the effect of the new employer duties. Let me reiterate that we will determine who is best placed to provide information by consulting stakeholders and expert organisations, along with individuals themselves. In addition, the regulations will be sent out for consultation. The noble Lord asked specifically who is the employer of an agency worker. It is the person who has responsibility for paying the individual. That is one of the provisions in the Bill.