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Pensions Bill

moved Amendment No. 91: 91: Clause 33, page 15, line 43, at end insert— ““( ) require, in the event of excessive delay, that interest be paid on unpaid contributions.”” The noble Baroness said: I should explain that this amendment was suggested to me by the TUC. As I have already told the Committee, the TUC welcomes the general thrust of the Bill and is entirely supportive of it, but it has one or two points of view that it has put to me that I thought warranted tabling amendments. We agree that there should be a robust compliance regime to ensure that firm action is taken against a minority who fail to comply with their obligations under the Bill. This should be supplemented by penalties for non-compliance severe enough to provide a deterrent effect. Therefore, the provisions already in the Bill on compliance are to be welcomed. Workers, however, should not experience any detriment or financial disadvantage because of an employer’s failure to enrol them into personal accounts or a qualifying pension scheme. There is a strong case, I believe, for interest payments on unpaid contributions to be made for any delay beyond a reasonable administrative period. That is what my amendment is designed to achieve. It would have the necessary deterrent effect and I hope that the Government will feel disposed to agree to it. I notice that the amendment has been grouped with government Amendment No. 92D, which, although on a different issue, nevertheless seems to accept the idea of interest being paid on unpaid relevant contributions. I hope, therefore, that my amendment will be accepted, as it seems to fit as new paragraph (g) in Clause 33(5). I beg to move.