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Pensions Bill [HL]

My Lords, I thank the noble Lord, Lord McKenzie, for that response. He had, as ever, a couple of questions—that is rather a low number for him. I shall do my best to summarise my answers. On phasing and parameters, I can assure the noble Lord that it does work. Phasing will be consistent with the amendment, which probably does not surprise him. At the moment the figures are comfortably within the parameters, so there is a safety margin. Clearly, if they fall out of those parameters, it will be due to changes that we need to look at. The certification model will be reviewed in 2017 when the phasing of the contributions has ended. As a result of this amendment the preconditions before the Secretary of State to make regulations will be a better check and balance on his powers due to two factors—that the percentage of job holders that must potentially receive at least minimum contributions is high, at least 90 per cent; and that the strength of the alternative certification requirements will be periodically reviewed. As there might be concern that this will add to the burden on employers, I should repeat for absolute clarity that the requirements fall to the Secretary of State, not to employers, using the test. Although the government proposal will be more demanding for the Secretary of State, it should maintain the right balance between flexibility for employers and safeguards for individuals. I am very pleased that we have been able to reach common ground on this issue. In my turn, I must commend the close scrutiny to which the Bill as a whole has been subject in your Lordships’ House. The quality of the debate has demonstrated noble Lords’ accomplishment and high level of expertise. Once again, this House has performed its role with the distinction and spirit that are expected from it. While I have the Floor I must take the opportunity to thank in particular those noble Lords who have made a significant contribution to the Bill’s journey through this House, notably, of course, the noble Lord, Lord McKenzie, in his role as opposition spokesman, and the noble Baroness, Lady Drake, for her accomplished performance at the Dispatch Box. I also thank my noble friends Lord German, Lord Stoneham and Lord Boswell, my noble and learned friend Lord Mackay, the noble Baronesses, Lady Greengross, Lady Hollis and Lady Turner, and the noble and learned Lord, Lord Falconer, for their participation in an active and often challenging debate. Finally, I thank my noble friend Lady Garden for her proficiency in covering a number of clauses in the Bill. I also thank the Bill team, who have supported the Bill throughout this process with the right material at the right time. I am very grateful to them. The Bill now passes over to the other place, and a number of noble Lords have presaged a little of the activity that they expect to see there on particular matters. I am just grateful to get rid of any prospect of having to look at PUCODIs again. Let me reiterate the principles of the Bill which I set out on Second Reading, as they are still absolutely applicable. We need a fair, sustainable and balanced system that adequately and accurately reflects the society we live in. Saving for retirement should not be a thought which occurs only when you first spot that grey hair. It should be a process that begins when you enter the labour market as an adult and continues over the years. The Bill does just that while not losing sight of the key tenet of providing a decent income for the individual in retirement. Amendment 2 agreed. A privilege amendment was made. Bill passed and sent to the Commons.