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Pensions Bill

This is part of a continuing debate we are going to have about the structure of the Bill. It is about taking a power so that we can ensure that employers have to deduct upfront under any arrangements; otherwise, some might be tempted—although I accept that this is overwhelmingly not the case—to take contributions later on, even though there is an automatic enrolment requirement from day one. That would disadvantage employees in respect of their pension arrangements. This provides for a power so that the regulations can make clear when those deductions can and should take place and require that they take place upfront. The noble Lord will be aware that the precise mechanics of auto-enrolment and the opt-out period are still being worked through, which is why the provision is perhaps not as prescriptive as he would like, but the intent is very clear: to prevent arrangements being put in place whereby contributions were taken from employees down the track, after they had been auto-enrolled, so that they did not get the full benefit of that auto-enrolment. I accept that the provision is not as prescriptive as the noble Lord would wish, but these powers are part of the structure of the Bill and enable what we want to happen. I think we have agreement on what we want to happen.