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Pensions Bill

I rise to support my noble friend. She highlighted a number of problems that have also been mentioned by the noble Lord, Lord Oakeshott, and the noble Baroness, Lady Hollis. I have been made aware of the research on this issue, which shows that the cost of levelling down in the insurance-based pensions market alone could witness a fall in annual contributions of £900 million. If someone on average earnings of £24,000 a year is switched from a typical DC scheme to personal accounts at the minimum statutory level, they could be £5,000 a year worse off in retirement. That is why I was very pleased to hear that a group comprising the Association of British Insurers, the National Association of Pension Funds, the Institute of Chartered Accountants in England and Wales and the Society of Pension Consultants has united to seek to provide a workable version of the proposed qualifying earnings definition. I understand that discussions are being held and I strongly urge the Minister to work closely with those important organisations in finding a way through the problem, which has been so ably outlined by my noble friend.