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Pensions Bill [HL]

For noble Lords who were anticipating a debate around PUCODIs, I advise them not to blink. This is just a gentle probe about the effects of getting rid of PUCODIs; hopefully, we communicated the nature of the inquiry to the Bill team to make it a bit easier on the Minister’s time. Clause 2 removes the right to receive payable uprated contracted-out deduction increments from 6 April 2012. It does not, as I understand it, affect awards already in payment, so the noble Lord, Lord Boswell, can relax, although I understand that he will be CPIed on it in the future. I imagine that at the moment it will buy him a thimbleful of petrol, if that. Let me be clear: we support this measure and consider it to be a sensible tidying-up. My probe is about what we understand to be the range of PUCODIs that would have been payable but for this abolition. The notes accompanying the impact assessments point out that the overall saving is less than £1 million—pretty small beer. For those currently in receipt, we are told that 80 per cent receive less than £1 per week, and for inherited rights the mean is about 60p per week. However, we are also told that the maximum payment is £14 per week, and £6.30 per week for inherited rights. Removing a few pence as a top-up is one thing, but taking away £700 per year is potentially something else. Perhaps amounts build to these levels only after a period of time, so maybe it is not an issue. Nevertheless, I should be grateful for the Minister’s comments about the spread of what would otherwise have arisen, to see whether there are any issues there or whether it really is de minimis.