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Pensions Bill

I thank the noble Baroness for tabling this group of amendments because they give me the opportunity to provide the Committee with some detail about the governance arrangements for delivering the reforms set out in the Bill, and to put into context the relationships between the different organisations involved and their roles. The reform programme, known as the enabling savings retirement programme, is one of the Government’s major programmes. It covers the introduction of automatic enrolment and the mandatory employer contribution, the implementation of personal accounts and the communications to support these reforms. There are four strands to the programme. My department is responsible for the development of policy and delivery of the necessary legislation, both primary and secondary. The authority is responsible for the delivery of the personal accounts scheme, which it will hand over to the trustees to operate. The Pensions Regulator is responsible for compliance with automatic enrolment and the payment of contributions. Finally, there is joint responsibility across those organisations for the communications strategy for individuals, employers, the industry and intermediaries. Clear governance structures are essential in managing a programme of this scale. There are interdependencies, and we have established a cross-government programme board with overall responsibility for ensuring that delivery is progressed cohesively by the organisations involved. This includes individuals from the delivery organisations. As part of that governance, it is of course essential to have a senior officer responsible for the delivery of the whole programme. In view of its responsibility for these public policy reforms, this post is held by my department. Clause 69 sets out the authority’s functions as part of this programme—to advise and assist with the establishment of personal accounts, including advising and assisting the trustees of that scheme; and, as required, to advise and assist with arrangements in connection with automatic enrolment. I can assure Members of the Committee that the authority’s primary task is the establishment of the personal accounts scheme which it will hand over to the trustee. However, there will be a period during which the authority will need to work alongside the trustee to assist and facilitate the transfer of the infrastructure and processes developed for the scheme. Removing subsection (3), as Amendment No. 112ZF would require, would prevent the authority providing any help to the trustee. I cannot see how this could in any way be desirable. Alongside this, the authority may be required to assist the Pensions Regulator, within the context of the programme, under the overall control of the Secretary of State. That is why subsection (2)(b) is drafted as it is and why I cannot accept Amendment No. 112ZE. We should not close down opportunities for all parties in the work programme to work together, within a clear governance structure, to deliver our ambitions for these reforms. Amendment No. 112ZG focuses on the authority’s remit. I confirm that the authority will have no legal authority to undertake any wider activity, including providing financial products, beyond the scope of the personal accounts scheme. I hope that these explanations have been helpful in establishing why Clause 69 is as drafted. I therefore urge the noble Baroness to withdraw the amendment. I note what she said about Amendment No. 112ZH—she is absolutely right and we are happy to support it. This is a huge project; it is important that we provide opportunities for effective communication and assistance, where it is appropriate, between the key players within a structure. That is what the clause seeks to do. It is that interrelationship which will make a success of the scheme. The noble Baroness may want me to cover some points that she feels I have not; if so, I will try to do so.