Mark Garnier
MP for Wyre Forest · Conservative · United Kingdom
“Many commentators have commented about public sector productivity underperformance. EY tells us that the public sector has underperformed to the point where it has cut GDP growth by 3% since 2019. The Institute for Government highlights an average of nearly 1% underperformance every year for that same period.”
“My right hon. Friend raises another big argument that we could have on the issue of rural broadband, but it is worth making the point regarding internet connectivity that I was just coming on to. I know this is as painful in other constituencies as it is in Wyre Forest.”
“I remember the impact that was felt in 2015 when HSBC closed the last bank in Bewdley in my constituency; people were utterly dismayed. Happily, the post office stepped in and was able to help resolve the issues, but since then we have now discovered that that the post office is under threat.”
“As I say, I am not an apologist for banks, and I am keen to ensure that we get a balanced argument. The hon. Lady is absolutely right that that is an awful lot of money, but it all comes down to what should be the right and proportionate response.”
“If a branch is not viable, should the bank keep it open? We must look at the other opportunities. The last Conservative Government recognised that and were committed to retaining vital banking services.”
“New York is the biggest financial services centre in the world and London is the second biggest, but in New York, 80% of the turnover is driven by the domestic market of America, while just 20% is international; those numbers are reversed in the UK, where 80% of the activity is international.”
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“I will not keep the Committee for too long. I thank the Minister for her kind words about the work of the previous Government in this area. As she rightly said, the regulations originate from the Berne financial services agreement, signed back in 2023, so it is something we have worked on. As somebody who worked in financial services for 27 years before coming to Parliament—I worked for two Swiss banks, had clients in Switzerland and did this kind of cross-border business—I can attest that this is a fantastic opportunity for our financial services sector. Anything that formalises the arrangement and makes transactions less sticky and easier to do can only be a good thing, so we will certainly be supporting the proposal 100% this evening.”
“Back in May last year, while in opposition, the Labour party was outraged to learn that the average processing time for applications to the Access to Work programme was running at 43.9 days. In fact, so outraged were Labour Members that they made it a manifesto pledge to tackle that problem. After more than 15 months in government, Labour is far from having slashed waiting times; applicants now have to wait an average of 93.6 days. That is more than twice the waiting time under the previous Government. After a year in government, the Labour party has doubled the misery and uncertainty suffered by disabled people—why?”
“We welcome the general thrust of the regulations, which are all about the internationalisation of our financial services market, continuing our moving on from a post-Brexit Britain. I was not a fan of Brexit, but we are where we are. It is incredibly important that our financial services centre remains internationally competitive, and the regulations support that. I will not detain the Committee any longer—I can see smiles on Government Members’ faces. [ Laughter. ] Let us hope the Liberal Democrats continue in that spirit. Question put and agreed to .”
“Something like 97% of employees are members of those unions, because they act as friendly societies and provide insurance, holidays and all sorts of things. That is a really good example of how friendly societies can work. We should be debating more the mutualisation of other utilities. We heard from the hon. Member for Cities of London and Westminster (Rachel Blake) about an energy company in her constituency that does this, but has she considered the possibility of mutualising Thames Water? It is a very ambitious project—”
“However, we are still waiting on the findings and for the Government’s response to be published, even though there seems to be a consensus that the regulations are still stifling growth in the sector. It is important to get the credit union sector to grow. Government Members know exactly how important it is, and so do Opposition Members. We need to get on with this. Doing so would only support the goals of the Government’s financial inclusion strategy, as well as their manifesto commitment to double the size of the sector. Let me put a few final points to the Minister. I had the honour to go to Iceland and meet representatives of the country’s trade unions, which, by any other standard, behave as friendly societies. It is invigorating to see that from something as fundamental as a trade union, funded by both members and employers.”
“I know the Minister will not be able to comment on the contents of the Budget right now, and we have to wait only another month, but I hope that the Economic Secretary to the Treasury takes note of this important point and feeds it back. I also encourage the Minister to look into the Credit Unions Act 1979, and specifically the regulations on geographical area and the total number of members in common bonds. The last Government made positive steps to increase the total number of potential members of credit unions from 2 million to 3 million, and at the start of this year the Government ran a call for evidence about common bond reform, which I welcome.”
“The Building Societies Association estimates that around 40% of all cash ISA balances are held with building societies, which turn those cash balances into mortgages for our constituents to go and buy homes. It is really important that we get some clarity on that. Returning to the issue of incentivising certain sectors of the economy over others, I am very much in favour of encouraging investment in the UK equity market, but we must be careful that, in trying to achieve the good, we do not get rid of the best. By trying to incentivise cash ISAs to move into equity markets, we are effectively taking cash away from the mutuals and putting it into normal equity. I am worried that, if this policy comes forward, the Budget could cause a problem for the mutual sector.”
“Those are all good things, but it feels like we are still waiting for some meat on the bone, so let me raise a few points with the Minister. First, the issue that is raised time and time again by those in the sector is their ability to access cash. By their very nature, co-operatives are member-run organisations, so they are more limited than companies when it comes to issuing shares that attract external investors. It is also worth highlighting concerns related to the rumours about what the cash ISA allowance will be following the Budget. There is talk that it will be slashed from £20,000 to £10,000. Cash ISAs are a really important way for building societies to access finances.”
“Do the Government want to double the number of mutuals, the number of members or the size of mutual balance sheets? What specifically are they seeking to achieve? The measures announced at the Mansion House in 2024—specifically, the creation of the mutuals and co-operatives business council and the commissioning of a report by the FCA and the Prudential Regulation Authority on the mutuals landscape—will help to lay the groundwork for that, but I hope the Minister will be able to provide the clarity the sector is looking for. Like the hon. Member for Oldham West, Chadderton and Royton, I also welcome the creation of a co-operative development unit in the Ministry of Housing, Communities and Local Government.”
“That is positive, but I would be interested to know whether the Government are considering a fund specifically for those in co-operatives and mutuals. In fact, we heard earlier from one Member about the potential for the British Business Bank to be opened up in order to support co-operatives and mutuals. I turn now to what this Government are doing. First, it is important to recognise the commitment in their manifesto to double the size of the co-operatives and mutuals sector. That is a positive direction of travel that the Government want to follow. However, Chris Bose of the Nationwide asked what the Government meant by that and wrote: “Precisely what was to be doubled was unclear, as was the means to achieve that.” This is an important point for the Minister to clarify.”
“It is understandably disappointing that although the 2023 Act received cross-party support when it went through Parliament, over two years later the regulations specified in the Act have not yet been announced by the Government and co-operatives are still unable to utilise the statutory protection that it provides. I note, however, that the Law Commission has proposed to put those powers into primary legislation through reform of the 2014 Act. Are the Government considering that? If not, what alternatives are being pursued? It is worth adding that the last Government introduced the community ownership fund. Although that was not directly targeted at co-operatives, some, such as the Calder Valley Community Land Trust, which seeks to reduce energy use and costs at Fielden Hall, have made successful bids.”
“It was good, therefore, that the last Government and now this Government have asked the Law Commission to review the legislation, and I look forward to seeing its proposals when they are brought forward, hopefully at the end of this year. I am also glad that the private Member’s Bill now known as the Co-operatives, Mutuals and Friendly Societies Act 2023 supported the co-operative sector to protect its capital and assets, and to discourage mutualisation. Introducing an asset lock mechanism could mean that organisations are able to lock their capital surpluses, ensuring that assets are non-distributable among members and must instead be preserved for the community and the purposes of the organisation.”
“I believe—possibly unsurprisingly—that that was done successfully under the last Government through the Co-operative and Community Benefit Societies Act 2014. The last Government introduced measures to increase transparency and facilitate growth, while maintaining the core principles of member benefit and community focus; for example, by increasing the maximum withdrawable shareholding from £20,000 to £100,000 per individual investor, they allowed for broader capital participation. Although the 2014 Act was positive for the sector, I think that there is widespread agreement that it needs to be updated to help support the growth and modernisation of the sector today.”
“Offering 100% relief on capital gains tax when a business owner transfers their company to an employee ownership trust has helped to empower communities, and we have seen a strong rise in employee-owned businesses, from 600 in 2020 to 2,500 this year. However, let me express a slight reservation. It is important in a competitive market not to incentivise one part of the economy, or one business model, over another, in the way that the Building Societies Act 1986 opened the way for demutualisation and incentivised building societies to convert into investor-owned commercial companies. Some have said that that was a bad thing, and in retrospect I probably agree. We need to be careful that we do not encourage excessive mutualisation and disincentivise investment in our equity markets. Fundamentally, a balance needs to be struck.”
“It is obvious, therefore, that the co-operative sector plays an important part in the health and growth of the UK’s economy. Co-operatives help to provide a diverse range of business models, which I believe is a good thing. Any healthy economy needs a variety of business models, and it is really important that we have things like co-operatives. I agree with the premise of the debate, which is about Government support for the co-operative sector. A perfect example of such support is the introduction under the last Government of employee ownership trusts and the tax incentives surrounding them.”
“That represents around 0.2% of businesses in the UK. According to a recent report by Co-operatives UK, there are 66 million members across the sector, with around 16.6 million people solely in co-operatives. I have to say that just in the last hour I have become a member myself, having signed up to the Co-operative on the app. [Hon. Members: “Hear, hear.”] Thank you very much. The exciting point about the last statistic that I referred to is that that number has increased by 1.4 million in one year, showing that the sector is truly on an upward trajectory. Additionally, it is suggested that the combined annual income of the sector is around £179 billion, with WPI Economics estimating that the sector has contributed £35 billion in gross value added, which is equivalent to about 1.5% of the total UK economy.”
“At a time when living conditions were particularly tough, these men decided to do something for their community by balancing the profitability of their shop and its members with the social impact on the community and the wider membership. That meant that essential, good-quality ingredients—flour, butter and others—became affordable for the community. The co-operative movement that was founded in Rochdale in 1844 continues to thrive today. It has grown to become an international movement; co-operatives operate in 109 countries. In the UK alone, we have 7,400 co-operatives, but if we incorporate organisations that operate in the co-operative spirit, such as employee-owned businesses, building societies, friendly societies, credit unions and mutually owned banks, the number comes to over 10,000.”
“It is a great pleasure to serve under your leadership, Mr Turner. I add my congratulations to the hon. Member for Oldham West, Chadderton and Royton (Jim McMahon) on securing this important debate, in which there seems to have been an outbreak of unanimity around the Chamber. As I start my remarks, I am conscious of the expression “everything that needs to have been said has been said but not everybody has said it.” My apologies if I repeat some of the points that have been made. As colleagues all know, this was all started in Toad Lane, Rochdale in 1844 by a group of 27—or was it 28?—men known as the Rochdale pioneers. The pioneers would not have been constituents of the hon. Gentleman, but it is important to recognise that the roots of the movement can be found not just in Rochdale, but in surrounding areas, including his constituency.”
“This was several Governments back—perhaps around 2007 or 2008—when 4G masts were first going up, and there was a proposal to put one opposite the Co-op. I had a conversation with the managers there and they said, “We will buy the site in order to prevent the telephone mast from going up.” So I have always been a huge fan of them, and I cannot imagine why it has taken me 20 years to actually join the Co-op. I thank the hon. Member for Oldham West, Chadderton and Royton for securing the debate. As I said, there has been an outbreak of unanimity, which is fantastic to see. I am only sorry that I did not bring more of my friends with me.”
“Paul Flowers, back in 2011 or 2012, I think, but he came before the Treasury Committee when I was a member of it and made a very good point. He said that his election as chairman of the Co-operative bank was because he was a member of it, not because he was good at finance. It is incredibly important, particularly with things like corporate governance, that we ensure there is training for corporate governors. Running a bank or a big chain of supermarkets is an incredibly difficult job, so we must make sure that that training includes not only people who work in the bank but those responsible for the corporate governance that looks after the organisations. My experience of the Co-operative in Kidderminster has been absolutely fantastic. A few years ago we were trying to stop a 4G telephone mast.”
“It is not in her gift, as she says from a sedentary position, but it is quite interesting. Notwithstanding the £17 billion black hole in Thames Water’s balance sheet, the water utilities are very geographically prescribed and millions of people use them, so they have a built-in membership. The most important issue that people are talking about is the pollution of waterways such as the River Thames. By mutualising an institution like Thames Water—by the way, this is not Conservative policy, but— [Laughter . ] But it is a debate we must have, Mr Turner. With mutualisation, members could have a proper debate about what investment they want to make in the purity of the waters. My final point is about skills. I do not want to bring up the ugliness of the debate over the former chairman of the Co-op bank, the Rev.”
“By transferring pension obligations to a superfund, companies can reduce long-term liabilities and refocus on core operations, while maintaining strong protection for retirees. Superfunds offer a new endgame strategy for DB schemes unable to secure an insurance buy-out, helping to safeguard member benefits in underfunded or marginal schemes. These measures all seem reasonable, and as I said, this work started under the previous Government, so we wholeheartedly support it. Question put and agreed to. Clause 51 accordingly ordered to stand part of the Bill. Clauses 52 to 56 ordered to stand part of the Bill. Clause 57 Prohibition of unapproved superfund transfers Question proposed, That the clause stand part of the Bill.”
“The Opposition support the clauses and welcome the action to legislate formally for defined-benefit superfunds. Securing this in a legislative framework will give trustees and sponsors greater confidence when considering this new consolidation option for defined-benefit schemes. The measures build on the consultation conducted under the previous Government, as well as the intention that the former Chancellor of the Exchequer, my right hon. Friend the Member for Godalming and Ash (Sir Jeremy Hunt), laid out in his 2023 Mansion House speech. Superfunds are capital-backed consolidators that allow defined-benefit schemes to shift liabilities away from the sponsoring employer, thereby enhancing the security of members’ benefits.”
“I will be incredibly brief. We have heard a number of details from the Minister. Clauses 93 to 96 contain what we believe are sensible and welcome amendments that reflect current market and scheme conditions. In particular, the changes related to the Pension Protection Fund are positive. With a strong funding position in many defined benefit schemes recently and the PPF’s healthy reserves exceeding £14 billion, these legislative changes are timely. The industry strongly supports the option for a zero levy, which reduces financial pressure on well-funded schemes. The Opposition wholeheartedly support these clauses.”
“It will be interesting to see if that comes through, but this is something we have to get right. People need to get advice because far too many people are going to go barrelling into their 67th birthday, or whatever it is, and suddenly discover that they have run out of money, and that is not a good place to be.”
“After 10 or 15 years, they will find themselves in a Bill Committee making these points and saying, “We told you this would be a problem. We told you so, yet here we are trying to resolve a problem that we knew was going to happen, and we allowed it to.” I am very cynical about Parliament sometimes, as all Members will be eventually. The important point is that the Liberal Democrat new clauses are an attempt to deal with the problems that we knew would come about. Auto-enrolment is brilliant—we really like auto-enrolment—but there are various things coming in under this Bill. We have to be careful that the things we bring in with the best intentions do not end up creating bigger problems due to unforeseen circumstances. If the Liberal Democrats pressed new clause 1, we would happily support it, as it is a good amendment.”
“Before that, to the person receiving the advice, the financial adviser would appear to be doing it for nothing. There would be an agreement, so it would be transparent and they would know exactly what was going on. However, the point is that now, if I am being asked to put money into a pension fund and I know I am paying the 1.5%, the fact that the commission is coming out of the money going in feels much less restrictive than being sent a bill for £1,500 or £2,000. That is much more difficult to meet, even though it comes to the same point in the end. The result of this is that, whereas about 50% of people used to put money into pensions and receive financial advice, the number is now 9%. There are an awful lot of newly elected Members of Parliament here.”
“That could have been dealt with by having a maximum commission rate on all the products; it could have been set at 100 or 150 basis points, which would have dealt with that problem. We saw this issue in the London stock exchange until 1986, when there were fixed rates of commission, so nobody could undercut another broker by providing cheaper dealing measures. We therefore knew it could work. The direct result of all this was that when the retail distribution review was brought in by the FCA in January 2013, we saw a massive drop in the 35,000 independent financial advisers. That has since recovered, and we now have around 36,000 advisers. The important point is that a financial adviser who goes out to persuade somebody to take advice on their pension now needs to charge a fee.”
“But why should they not improve their standards? There were issues to do with lifetime liability—advisers’ taking responsibility beyond seven years for advice that they had given, which was very contentious. Also there was clarity on the models of advice being given. However, the key element that caused the problems was where independent financial advisers, prior to that moment, were being paid a commission on the product that was being sold, which potentially led to product bias. If a commission was being paid at 2.5% on one product and 1% on another, the independent financial adviser would have a material interest in selling that higher-commission product, even if it was a worse product.”
“Friend the Member for West Worcestershire (Dame Harriett Baldwin) and I held our first Backbench Business debate on the retail distribution review, and it is recorded in Hansard that we predicted this would be a problem as a result—fewer independent financial advisers being available to give advice. There were three key elements of the retail distribution review. They were very well-intended, and let us not beat about the bush: there were reasons why they were brought about. One of them was intended to raise the professional standards of independent financial advisers, and I think we would all agree that that has to be a good thing. The advisers complained at the time because they did not want to take exams. If they had been in the business for 40 years, why would they feel that they needed to take an exam?”
“I am keen to speak to these Liberal Democrat new clauses, because we have a fundamental problem. Research by Pensions UK shows that more than 50% of savers will fail to reach their retirement income targets set by the 2005 Pensions Commission, and closing the gap between what people are saving and what they will need must be a pressing concern of any Government. So, we need the second part of the pensions review to be fast-tracked, with a laser-like focus on pensions adequacy. This takes me back to when I first became a Member of Parliament some 14 or 15 years ago. The big issue at the time in the independent financial advisers market was the retail distribution review. My hon.”
“The Minister raises an interesting point. We have talked about a lot of different bits and pieces with complexity and all the rest of it. We have not spoken about when we educate people about money. In the olden days, when I was a newly elected MP, I was one of the chairs of the all-party parliamentary group for financial education for young people. That was about getting financial education into the curriculum. It is probably now more important than ever that we teach people of school age about the importance of financial planning, including pensions. Can the Minister assure the Committee that he will take up with his colleagues in the Department for Education the changes that could be made to bring this type of education into the curriculum for kids, who are all going to be adults soon?”
“If the Minister gave us that assurance, I would trust him—being an honourable and decent man—that he could make his current boss get something done about this on 26 November.”
“Because of the change of accounting at the back end of last year, this could turn the Government’s £30 billion fiscal black hole into a £32 billion one, even though that money is earmarked only for pensions. I would like to hear from the Minister how the Government will resolve that. I would like him to make an undertaking that we will hear something about it on 26 November, and that there will be something in the Budget to resolve this fiscal conundrum. We need to know where the money will come from, and that the Government have set it aside. This is a perfect opportunity to deal with a problem that has been going on since 1997, and that becomes more profound every time the Office for National Statistics announces the rate of inflation.”
“Where people have done the right thing and put money into their pension, but it has not followed through, that is a big problem. One thing does bother me: I do not want to be too political, but the Government have dug themselves a freshly made £30 billion black hole in the last year. Although the SNP spokesperson is absolutely right that the £12 billion in the PPF is available to spend only on pensions, the problem is that because it appears on the country’s balance sheet, if the money to pay the price for this—I think it is £1.8 billion—came out of that, there would be a £1.8 billion increase on the country’s collective balance sheet. The argument would go that it would then reduce it. At some level, fiscal prudence has to come in to make sure we are not creating a deeper black hole.”
“I want to follow on from the two powerful speeches by the Liberal Democrat and SNP spokespeople, the hon. Members for Torbay and for Aberdeen North, in highlighting the fact that this problem is—dare I say it—disappearing over time. This feels slightly similar to the ongoing contaminated blood debate, and it is a similar type of thing. The people who would be compensated for the contaminated blood are, for tragic reasons, disappearing. Indeed, I think there are now 86,000 pensioners who were caught up in this particular problem, and the longer this is kicked down the road, the smaller the problem will become, for obvious reasons. The principle behind this is absolutely right. It is incredibly important that we as a country, society and community look after all these people.”
“For example, if we look at stock market performances from the 1980s to now, we will see a very steady rise in the stock markets over time, which have done particularly well. However, if we go back to 1987 or various other times, such as 2000-01, we will see big stock market crashes that will have appeared on the balance sheets of those defined-benefit pension scheme host companies. As a result, these pension schemes are missing out on the long-term growth to push away the short-term volatility that hits the host company. With these three new clauses, we are trying to get that out of the way so that defined-benefit pension schemes feel more comfortable about investing in higher-growth and therefore higher-volatility assets.”
“First, if a company has a deficit on its balance sheet, that restricts its ability to raise equity or debt to invest into its business, so the host business cannot expand because it has a defined-benefit pension scheme with a deficit attached to it. A second problem then comes as a result of the Maxwell rules: the trustees of a defined-benefit scheme with a host company will be reluctant to invest that into high-volatility assets. We know that, over a long period of time, the equity market will perform far better than the bond market. The problem is that we can have volatile markets in the short term, which could introduce a deficit in the defined-benefit pension scheme that translates to a deficit on the balance sheet.”
“One of the problems facing defined-benefit pension schemes is that, in response to the outrage over Maxwell and Mirror Group Newspapers pinching money from pension schemes back in the 1980s and 1990s, rules were introduced that were basically designed to ensure that it would not happen again. They were introduced in such a way to ensure that, if a defined-benefit pension scheme were to go into deficit, the deficit would be reflected on the balance sheet of the host company. We still see that today in some larger companies; I think the British Telecom pension scheme currently has a deficit of £7 billion, and that appears on British Telecom’s balance sheet. That does two fundamental things.”
“When we look at the thrust of the Bill, the mandation measure is all about trying to get pension funds to help to create greater productivity within the UK economy. A couple of days ago, in a very helpful intervention on a speech made by my hon. Friend the Member for Mid Leicestershire, the hon. Member for Hendon made the point that, while we are standing against mandation, we must ask: what are we standing in favour of? How are we trying to get behind the grain of the Bill? These three new clauses respond to that question of what we are doing to ensure that the Bill actually can use pension fund money to promote economic growth, invest into the UK and get better returns for the pensioners.”
“(2) The review must consider— (a) the impact of the provisions of this Act on actual and projected retirement incomes, and (b) whether further measures are needed to ensure that pension scheme members receive an adequate income in retirement. (3) The Secretary of State must prepare a report of the review and lay a copy of that report before Parliament.”— (Mark Garnier .) This new clause would require the Secretary of State to prepare a report on the impact of this Act within 5 years of its passing. Brought up, and read the First time .”
“I am partially reassured by the Minister’s comments, but it really comes down to the kindness of my heart—I would not want the hon. Member for Hendon to be pulled off the Committee and put in an awkward situation. It would be unfortunate to force him to fall out with the Whips so early in his parliamentary career, so I beg to ask leave to withdraw the motion. Clause, by leave, withdrawn. New Clause 37 Review of impact of this Act “(1) Within five years of the passing of this Act, the Secretary of State must carry out a review of the impact of the provisions of this Act on actual and projected retirement incomes.”
“It would mandate a formal review mechanism, enhancing policy responsiveness and parliamentary oversight. Ultimately, it aims to safeguard millions of future retirees from inadequate incomes, and support a sustainable and fair retirement system.”
“That would formalise an ongoing review cycle to monitor pension adequacy regularly, preventing the consideration of the issue being indefinitely postponed. As we all know, pension adequacy is vital to preventing poverty in later life and to ensuring quality of life for retirees. Despite expanded coverage through auto-enrolment, however, many people are still on track to fail to meet retirement income targets. Financial resilience frameworks show disparities in adequacy among lower earners, women and other vulnerable groups, and current retirement income depends on a number of variables, including contribution, sufficiency, investment returns, longevity and state pension level. The new clause would ensure that the Government take responsibility to monitor and report regularly on pension adequacy outcomes.”
“Recent forecasts and analysis warn of a retirement crisis, with many future pensioners expected to have less income than today’s retirees unless action is taken. The Government’s renewed Pensions Commission is due to report in 2027, focusing on the adequacy, fairness and sustainability of the retirement framework, but that report will only come in 2027. The new clause would create a statutory obligation for the Secretary of State to conduct a full review within five years of the Bill’s passage, focusing on its impact on actual and projected retirement incomes. It would require an assessment of whether current policies and contribution levels are sufficient to ensure adequate retirement incomes. The Secretary of State would have to report the findings to Parliament, increasing accountability and transparency.”
“I beg to move, That the clause be read a Second time. Under new clause 37, the review of the impact of the Act would focus on pensions adequacy. The current Government plan to delay the comprehensive consideration of pensions adequacy to future phases of the pensions review. Any resulting reforms from those future evaluations are projected to take several years to develop and implement, and there is widespread concern that without a mandated regular review process, inadequate pension outcomes will persist. Millions of people in the UK therefore risk having insufficient retirement income, particularly lower earners, ethnic minorities, the self-employed and those with interrupted careers. Automatic enrolment has expanded workplace pension participation and now covers over 88% of eligible employees, but significant savings shortfalls remain.”
“(2) A protocol established under subsection (1) must include— (a) an overview of the coordination mechanisms between the two bodies; (b) a published framework for oversight of hybrid or work-based personal pension schemes; (c) a requirement for regular joint communications from both bodies to clarify regulatory boundaries for industry stakeholders.”— (Mark Garnier.) Brought up, and read the First time.”
“We tabled new clause 37 partly to try to get some reassurance from the Minister. Two years is still quite a long time, as is five, but it is incredibly important that we are on top of what is going on in the pension industry, not least because we do not want any of our constituents to end up with miserable retirements. However, I am marginally reassured by the Minister’s comments. I beg to ask leave to withdraw the motion. Clause, by leave, withdrawn. New Clause 38 Guidance on the roles of the Financial Conduct Authority and the Pensions Regulator “(1) The Secretary of State must establish a joint protocol outlining the roles and responsibilities of the Financial Conduct Authority and the Pensions Regulator regarding their regulatory responsibility of the pension industry.”
“The new clause would promote regulatory clarity and efficiency through mandated guidance, protecting pension consumers and enabling robust governance across the sector. Clear regulatory pathways will better support pension savers by ensuring consistent standards and enforcement across all types of pension schemes.”
“That matters because collaboration between the FCA and TPR ensures comprehensive consumer protection across all pension products. With pension system complexity increasing—with mega schemes, master trusts and hybrid arrangements—co-ordinated regulation is critical. That will enable both regulators to leverage their strengths—the FCA in consumer conduct and financial advice, and TPR in governance and compliance enforcement. That will help trustees, employers, firms and savers to better understand which regulator to engage to resolve issues and access support. Industry feedback consistently calls for more precise demarcation to avoid confusion and compliance risks. The Government’s wider reforms and digitisation initiatives, such as pension dashboards, further heighten the need for co-ordination.”