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Pensions Bill [HL]

I can well understand why pension providers are—let me put it politely—apprehensive about the competition offered by NEST in terms of fees and charges and, therefore, want to protect the funds under their management. I accept the noble Lord’s argument that the bigger issue of getting rid of the cap altogether may have to wait until 2017, although I am disappointed about that. What I do not understand is why there should be any threat to existing alternative providers for people who are in NEST and who, two or three years down the line, find that they have missing contributions, possibly by virtue of maternity leave or whatever. I cannot see how that situation—making good the shortfalls of previous years—is in any sense a threat to any other provider. Because they are in NEST, they will not be in any other provider’s scheme. NEST is not, therefore, in any sense, competition to them. I support the second of these amendments, although I understand the challenge that it might represent. However, the first amendment would simply make good the headspace in back payments, and I do not see why that would represent a challenge or a problem of any sort. Given that people occasionally get modest sums of money, it would seem to be consistent with our wish to encourage people to think about their retirement and to be able to make that money available for NEST. I do not know whether the Minister has anything further to add; he may feel that he has said all he is going to say on this.