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Pensions Bill

We have debated some of the issues that lie behind these amendments already in Committee. The amendments are part of the Government’s denial of the problems that the definitions in the Bill will involve. They are happy to grant the trustees a power to alter the scheme rules to allow an employer to pay more or more often into a scheme, but they have not recognised that the problems the Bill will cause will operate in a different way. Employers will have to pick up the costs of any rule changes, either directly or indirectly, and Clause 28 correctly requires employer consent. But they will not give that consent unless there is some advantage to them, and it is not obvious what the advantage will be of increasing contributions under the Bill. We will not oppose the amendments, but they do not address the real issues that will arise under the Bill of why employers would want to incur costs to amend their own scheme—not only by paying more in but by changing the rules and their payroll systems to meet the definitions we discussed on our previous Committee day in connection with the group of amendments under Amendment No. 60A. The difficulties are so great that it would be easier for employers not to amend their existing schemes but simply to let personal accounts take over. Levelling-down is the elephant in the Committee. The Government cannot wish it away with amendments like this.