Seema Malhotra
MP for Feltham and Heston · Labour (Co-op) · United Kingdom
“Public sector productivity is improving, with the latest Office for National Statistics figures showing output continuing to grow faster than inputs, and Departments being challenged to improve efficiency and modernise outdated processes.”
“I was proud to support the Feltham Convening Partnership’s young leaders summer programme last month. What struck me was their ambition for themselves and their community, as well as their call for more work experience opportunities.”
“We will be working to commence the socioeconomic duty on public bodies in section 1 of the Equality Act to require public authorities to put addressing socioeconomic disadvantage at the heart of their strategic decision making. There will be more on that to follow. Let me again thank my hon.”
“For generations, the message to those who want to enter public life or elite professions has been that if they want to get on, they must sound like everybody else. When Margaret Thatcher became leader of her party in the 1970s, she famously underwent intensive elocution lessons with a tutor from the National Theatre.”
“Whether a young person chooses a degree or a trade, their journey must be determined by merit and their potential—never by whether they have to change their voice or pretend to be someone else to fit in.”
“Interestingly, studies also regularly show that regional accents such as Welsh or Yorkshire are rated by the public as trustworthy, warm and honest. Yet when those same studies measure perceived intelligence or employability, standard southern English and received pronunciation invariably top the metrics.”
The complete record
Every one of 5,023 lines we hold for Seema Malhotra, in date order, each linked to its source. Free to read, in full, without an account. Page 71 of 101.
“Surely, it is more important than ever that people make use of impartial guidance appointments and we would welcome concrete proposals by the Government to improve take-up of these appointments. On pension charges, at a time when millions are struggling, it is vital that pension costs and charges are reasonable and transparent, and that people receive value for money. Research by PensionBee found that 70% of non-advised draw-down customers pay more than 0.75% a year in charges costing them £40 million to £50 million extra a year and more than £175 million since the pension freedoms were introduced. The long-term impact of high costs and charges for income draw-down could be significant. It is argued that putting costs and charges on the simpler annual statement would confuse people.”
“Friend the Member for East Ham (Stephen Timms) to the Pension Schemes Bill, to protect people better from risky transfers and improve the provision of advice, to stop people falling prey to scammers. We regret that the Government did not support my right hon. Friend’s amendments, but welcomed assurances from the Minister that regulations will be brought in to ensure that trustees should not have to proceed with a transfer where there are good grounds for believing that a proposed transfer involves moving pension savings into a scam. On auto-enrolling people into pension guidance appointments, Pension Wise is an excellent service with high satisfaction ratings, but only one in 33 of those eligible to use it do so.”
“An example is the uncertain status of the 10,000 members of the Arcadia defined-benefit pension scheme, where there is an eye-watering deficit of about £350 million. The Government must act to ensure that those workers get the pensions that they are owed. It is Labour’s firm view that Sir Philip Green and Lady Green owe a moral responsibility to the employees to fill the pensions shortfall. They must not allow their workers to go into Christmas not only having to deal with the consequences of losing their jobs, but fearing for their pensions. The pandemic also brings an increased risk from pension scammers preying on people who are worried about the impact of the current economic uncertainty on their savings. That is why Labour fully supported the amendments tabled by my right hon.”
“The Minister knows, indeed, the importance that we also give to cross-party consensus on such important strategic directions in pensions policy, and that we have worked closely with him on many measures in the Pension Schemes Bill. There could not be a more important time for us to work together to protect people’s financial security in retirement, because even though the Government have refused to publish their dossier on the economic impact of coronavirus, we know that the economic fallout is vast. Indeed, according to the OECD the pandemic has compounded the challenges for retirement savings, including pressures such as ageing populations, slow growth and low returns, which will continue long into the future. Furthermore, the fall of major employers puts the pensions of entire workforces at risk.”
“The backlog for individual cases in employment tribunals has already passed the post-2008 financial crisis record, with 37,000 workers in the queue. Analysis by Citizens Advice suggests that if that continues to grow at the current rate, the number of outstanding claims could pass 500,000 by spring. When will the Minister take action at the scale necessary, and stop the Chancellor’s jobs crisis becoming a justice crisis, by targeting much needed support to employment tribunals?”
“However, the British High Commission in Nairobi has written to the Kenyan Ministry for Foreign Affairs and the Head of the Department for Pensions in the Kenyan National Treasury seeking an explanation for non-payment of pensions to former Kenyan civil servants and the lack of increase in line with inflation.” Our hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury) received exactly the same response in July. Does my right hon. Friend agree with me that it is for the Government to be doing more to support our citizens?”
“When I wrote to the Minister last year, I received this reply: “While this matter is the responsibility of the Kenyan authorities, the British high commission in Nairobi has written to the Kenyan Ministry of Foreign Affairs and the head of the department for pensions in the Treasury seeking an explanation for non-payment of pensions and lack of increase in line with inflation.” I was very surprised to see subsequent responses to parliamentary questions—for example, that tabled by our hon. Friend the Member for Washington and Sunderland West (Mrs Hodgson). That answer, in February, said: “This matter is the responsibility of the Kenyan authorities.”
“I thank and congratulate my right hon. Friend on securing this debate, which, as he said, is a matter of great concern for many of our constituents. I want to acknowledge and thank Mr Mangal Chudha in my constituency, who also brought this matter to my attention, along with two others. My right hon. Friend just made the point that the UK Minister has told our constituents to write to the Kenyan Ministries. May I raise a concern and ask my right hon. Friend’s view on it?”
“Without answers to these questions, it is very difficult for people who are now in their 80s or sometimes in their 90s to be getting these answers directly from the Kenyan Government, which is what our Government are advising them to do.”
“My right hon. Friend is being very generous in giving way. He raises the very confusing issue of why we have not been able to get an answer to the questions around the non-payment of pensions to former civil servants, but also the lack of the increase in line with inflation, which I understand was part of the agreement many years ago between the British and the Kenyan Government, I think in 1977. A constituent has highlighted to me that he is one of 300 people who have not received an inflationary increase since 1991, and then from last year he has not been receiving his pension, so there has been some confusion over a number of years.”
“Does my right hon. Friend agree that, as well as being an administrative nightmare for our constituents, it is also highly distressing for people to have to battle for something to which they have a right? This is something that they have earned through their hard work and commitment to the Kenyan Government and through their public service to the Kenyan nation. They should not have to fight for it in their retirement. This is the time when we need our Government to step in and help them.”
“I thank the Minister for the detailed response he is giving. Do the Government have any sort of taskforce that is dedicated to trying to get a resolution on this issue and to pursuing that doggedly? Will they keep those in the UK who are retired and affected up to date? I make the point again about the distress and strain for them, their children and their wider families, and the concern about whether, if people have passed away, their entitlements will still go to their relatives, because their families should have received them.”
“Some 85% of capped households have families with children, and the Minister revealed last week that more than 160,000 households on UC could see their benefits capped in December, when their grace period comes to an end. Does she feel no shame in plunging families and children into hardship right before Christmas? Children are paying the price for their parents losing their jobs. This is a ticking time bomb and she can stop it—it is her choice: will she scrap the cap?”
“In conclusion, future generations will judge us by the choices we make today to support livelihoods and businesses, tackle the unemployment crisis, and face up to the realities of the climate emergency. An economic plan needs a jobs plan, and a jobs plan needs a skills plan. A credible green recovery with sustainable jobs—something that people across the world are looking to—requires co-ordinated action across Government, harnessing investment and regulation, working alongside local government and the private and voluntary sectors to deliver system-wide change right across our country. We cannot let the failure to address pre-covid inequalities, laid bare by this crisis, now be an injustice that we allow to be passported into the future.”
“Opportunities for access must come through effective Government schemes; the latest figures show that the Government’s Kickstart scheme has so far created opportunities for around 3% of the 600,000 unemployed young people. We also need to make sure that these are high-quality placements with built-in training opportunities for young people that provide a transition into longer-lasting employment, so that around the country opportunities for young people are sustained into a long-term future. That is important because effective support in work and out of work—including an effective social security system that supports workers—is vital. People will be looking to switch jobs following changes in the labour market perhaps 11 times, on average, in their lifetime. That is very different from the world in which past generations grew up.”
“An ambitious vision for how technology can be used to open up and improve opportunities for all workers should be core and part of a commitment to ensuring that the future of work is resilient and inclusive. Alongside that, we should also be looking to explore and review rights such as the right to disconnect, giving remote and electronically connected workers the tools to disconnect to ensure that their mental health and work-life balance are protected and respected. That issue was highlighted effectively by the union Prospect. We must look at effective employment support. People must have access to work for the future.”
“Emerging technological change in workplace practices must look at improved transparency, accountability and involvement: that should be at the centre of any Government plan. That plan could include how the Government will work shoulder to shoulder with trade unions to stand up for working people, as well as tackling insecure work and low pay, and transforming the training opportunities available to people at every stage of their lives, with schools, further education and higher education all part of that. That is why it is so important to reconsider and rethink the proposed cuts to the union learning fund, which is so effective and vital to adult education. It is also important to take tough action to raise standards and root out exploitation in lower paid under-regulated sectors.”
“Many employers have sought to do the right thing by employees in the uncertain period in which we live, and unions have been working closely with many of them. Other employers have sought to take advantage of the pandemic to erode workers’ pay and terms and conditions, as discussed in the “fire and rehire” debates in the House. That has exposed the need to strengthen our offer to workers and to enhance the protection afforded them. It also raises how vital it is that we listen to workers and include their views in how we shape the future of work. According to research by the Fabian Society, some 58% of workers say that they are given no opportunity to influence how technology is used in their workplace.”
“There is a need to review concerns around workers’ rights and protections as labour market structures change, and issues around the future of good work and of workplaces post-covid must be matters for debate and policy. It is not a new area: 30 November marks the fourth anniversary of the launch of the Taylor review, which looked at insecure and exploitative work, the quality of work, and modern workplace values. It is time to refresh that: the Government have only passed legislation on seven of the 53 recommendations to date, despite accepting much of that report. Furthermore, in an answer to a parliamentary question today Ministers were still not able to define when the Employment Bill will be coming to Parliament.”
“We need to support people back into work, so I hope that the Minister will reconsider the punitive culture behind benefit sanctions, brought back by the Government in July. The future of work—a resilient, inclusive future, with good work for all—is critical as we think about how we build back better. The theme is now international, reflected in recent reports on the future of work published by the World Economic Forum, the International Labour Organisation, the OECD, the RSA and, of course, the Institute for the Future of Work, which I thank for its work supporting the all-party parliamentary groups and its briefing in advance of this debate. Many of these debates look at the acceleration of changes in workforce practices, including the advent of automation and AI. As change comes, however, we must lead rather than lag.”
“Indeed, those are themes to be discussed at the West London Business conference tomorrow on the future of aviation and communities. The future of work must mean fair work, and a social security system fit for purpose. Too many workers have had inadequate employment rights and precious little bargaining power. The pandemic has highlighted that the social security system that should underpin those workers’ autonomy in the labour market is woefully inadequate. It is also important for the Government urgently to conduct and publish an assessment of the financial barriers to self-isolation, including the level of statutory sick pay. If such gaps are not filled, a cohort of people will continue into the next period having to make an impossible choice between self-isolating and putting food on the table.”
“That is why Labour has launched its own jobs-rich green recovery action plan, which includes action to recover jobs, and investment and co-ordination to secure up to 400,000 good, green additional jobs; to retrain workers by equipping them with the skills needed; to deploy the green technologies of the future; and to rebuild business with a stronger social contract between Government and businesses to tackle the climate crisis and ecological deterioration, while promoting prosperity and employment. I will also make mention of co-operative strategies, raised by my hon. Friend the Member for York Central. A co-operative strategy for recovery that builds from the bottom up, looking at community resilience in our recovery, is an important part of our future.”
“As has been said, they are the least likely to be able to work at home and those who will struggle for access to the new jobs of the future. Yesterday, the Government announced an additional £8 billion for green funding for the future. That is welcome, but it does not remotely meet the scale of what is needed to tackle the climate emergency and is far smaller than the €27 billion pledged by France or the €38 billion by Germany.”
“Because more than 1 million jobs have been lost during the crisis. Vacancies remain 30% below pre-crisis levels, and forecasts suggest that unemployment will remain substantially above its pre-pandemic level well into 2022. Too many entered the pandemic in an already precarious position. More than 12 million households began the year with less than £1,500 in savings. They have been hit hard as jobs and income have been reduced. Jobs are becoming less resilient, not more. The latest ONS figures show that more than 1 million people are on zero-hours contracts, almost double the number in 2013. Ethnic minorities, young people, single mothers and the lowest paid have seen their employment hit the hardest, with a double hit on BAME communities disproportionately affected by the health crisis.”
“To some extent, it might replace work but in truth it might also not replace work—it might create those new jobs. How we embrace and shape the technology and changes of the future is down to the choices that we make. Past mistakes cannot be allowed to continue. We should not come out of this period with greater division than we saw not just going into the crisis but before, and with a deeper digital divide creating those who are in and those who are out of prosperity in future. The imperative that a decent society does not leave people behind must be our priority. Employment will be one of the key themes of 2021. What has to be critical is not just how we create good work and jobs for the future, but access to those jobs and fair and decent pay to go with them. Why is that?”
“Friend the Member for Easington (Grahame Morris) talked about how building back better cannot be left to the market, talking about a role for Government, communities and the unions. The hon. Member for Strangford (Jim Shannon)—it is always a pleasure to speak in a debate with him—talked about worrying times for the nation. He is absolutely right. This is an issue that we must all face together, with the concerns of our constituents very much at the forefront of our minds. My hon. Friend the Member for York Central (Rachael Maskell) talked effectively about dignity, identity, self-worth, and the need to reshape our economy and to look at sector councils. I want to build on some of those themes. The issue has many dimensions. Technological change is creating the future.”
“It is a pleasure to serve under your chairship, Mr Hollobone. I join colleagues in congratulating the hon. Member for East Renfrewshire (Kirsten Oswald) on securing this debate on the future of work, and on her speech. The range of contributions that we have heard from hon. Members, and the thought that has gone into each, show that the issue should, increasingly, be on the parliamentary radar. The hon. Member for East Renfrewshire was right: the status quo is not good enough, and we cannot go back to the past. Many issues have been raised. The hon. Member for Devizes (Danny Kruger) talked about the importance of effective employment programmes. My hon. Friend the Member for Dagenham and Rainham (Jon Cruddas) rightly said that technology is not destiny and that the future is far from certain. My hon.”
“With this one, once we understand the work of the fund and what it achieves, there is only a downside.”
“We are about giving someone the belief in themselves that they can achieve. By providing education delivery in the workplace and in the community, we are opening up countless opportunities for workers… who may have thought they were not available to them. I say workers and not members because not everyone who takes part in one of the courses is a union member… because ULF workers are at the frontline… we can adapt and respond to the needs of workers in a work place and that too of the company… when working together and deliver education” that is in line with the initiatives put forward by the Government. She adds: “Many of the students would not be able to attend regular colleges due to cost”. I do not need to say much more. With some policy choices, there are grey areas to consider.”
“And what assessment has she has made of that impact? To add to the comments made by my hon. Friend, I received a contribution from Catherine, a learning rep for Unite. She says: “I would like to add some information that may be of use to you through my own personal experience…and the students I have worked with… the ULF is more than delivering maths, English and ICT… it is about giving someone the opportunity to learn, who for whatever reason may not have had the confidence within themselves, time or energy to go to college or do a course online… We are not just about gaining qualifications, we are about giving someone the ability to read to his grandchildren, we are about helping to deliver equality and diversity training to an entire workforce, we are about delivering vital skills to vulnerable and low paid workers who cannot afford to go to college, or whose working hours don't fit with that of colleges.”
“At the heart of the model is a union learning rep, a trained worker who understands the workforce, the nature of the business and the skills gaps that exist. I know that the Minister is aware of work that I and other Members of Parliament around Heathrow are doing in response to the current pandemic to support a learning offer. Unite and others are involved in developing a new Unite learning hub at Heathrow, and it is one of the best examples I have seen, with hundreds of tailored courses based on learning surveys with people in the workplace and in the community. How many Unionlearn projects has the Minister visited? How many reps has she spoken with? How many employers and employees using the model has she talked to? What published assessment has been made of the return on investment or the impact?”
“It is a pleasure to serve under your chairship, Mr Hollobone. I support the arguments powerfully laid out by my hon. Friend the Member for Nottingham South (Lilian Greenwood), as do employers, the RSA, the CIPD and others. Last month the TUC was told that Ministers had decided not to continue funding Unionlearn beyond the current financial year. That is a termination of £12 million annual funding, which supports over 200,000 learners in workplaces across the country every year—learners who undertake all sorts of job-relevant learning and training, including basic literacy, numeracy, information and communications technology, apprenticeships and traineeships, vocational training, continuous professional development, and many other informal and formal courses.”
“More of that will be debated at the important conference, which the Minister is aware of, hosted by West London Business this Friday on “reimagining our global hub”, looking to the future of aviation and transportation, and our leadership in the UK and across the world. What incentives are required to drive the innovation essential to delivering zero carbon aviation, and how can we look to the longer-term infrastructure development, including Southern rail access to Heathrow? Supply chains also matter. That is why we need an integrated sector-based plan now.”
“Heathrow workers are set to go on strike next month. Much more concerted dialogue with management is clearly needed. The GMB, Prospect and Unite have been clear in their ask of Government to put forward an aviation-specific package, and they will contribute to the thinking that goes into it. Furlough has been welcome, but the job support scheme, as expected, was criticised as not workable for the aviation sector and aviation jobs, which involve more complex 24/7 shift-work patterns. More support for transition where jobs are lost in aviation communities is vital. Finally, on plans for the future and decarbonisation, we know that progress on decarbonisation has been painfully slow. We welcome the jet zero plans and the work going on in government on the aviation sector in that regard.”
“Getting planes flying safely will be key to saving jobs, including those that will be viable for the long term. We need more flexible and targeted schemes to keep people in work, and in their jobs, until aviation recovers. In Hounslow, we have seen devastating impacts. My constituency has the third-highest number of furloughed employments in the country, but 40,000 jobs are still at risk unless we see a recovery. I thank our unions and councillors, like Councillor Khulique Malik, who works at Heathrow, for the support that they have given the community at this time. Businesses also need to work together for the long term. I am grateful to Unite for highlighting the imbalance of power that we are seeing at Heathrow. Heathrow Airport proposes changes that could see workers’ pay cut by £8,000 a year—equivalent to a 20% slash in salary.”
“Eight months later, an integrated plan has not yet been published, while redundancies continue to rise. To help the industry recover as quickly as possible, we need a robust testing regime at our airports, which could reduce quarantine. Some welcome pilots are under way, which put public health first while taking advantage of swifter testing. The Government have said that families will be able to fly abroad for Christmas with a new testing regime, but that is still six weeks away. United Airlines has already begun pilots on the London-New York route, but closer international working is needed. Are the Government planning to commit to a common international standard for health screening measures? The UK lags behind more than 30 countries around the globe that are doing more on aviation testing.”
“It is a pleasure to serve under your chairmanship, Sir Edward. I congratulate the right hon. Member for Epsom and Ewell (Chris Grayling) on securing this debate on an industry that is vital to my constituents, thousands of whom work at Heathrow. I want to make a few points. First, we urgently need a plan for aviation, including a plan for passenger testing, to help get planes flying safely, inbound and outbound. Secondly, we need a realistic, targeted support package to tackle the impact of the pandemic in the medium term on jobs, businesses and aviation communities. Thirdly, we need to plan for the future and invest more, not less, in the pace of decarbonisation in the sector. In March, the Government promised a recovery plan for aviation.”
“A big challenge facing them is the uncertainty and difficulty in planning without clear guidance and direction. Although Brentford has persuaded 94% of season ticket holders to freeze their tickets for now—I thank the fans for doing so and for their support—we know that that is not sustainable and will put the club in a difficult position for next season without further Government guidance. We need a clear road map for fans to return, in line with other sectors, once the second national lockdown comes to an end. I ask the Minister to consider working closely with local safety advisory groups in doing so.”
“In September, I raised that in the House and described how Brentford had been working closely with its local safety advisory group to develop appropriate safety protocols and social distancing measures to allow around 5,000 fans—about 20% of capacity—to attend. Clubs have been working in innovative ways to bring fans safely back into football grounds. The English football league, the premier league, the women’s super league and the women’s championship have already staged 11 successful test events, showing that matches can be delivered safely. It is imperative, and the foremost priority, to protect public health, but as we look to the future the Government must also acknowledge that clubs require urgent clarity on plans to reopen stadiums.”
“The absence of fans over the past eight months has been crippling for many clubs and lower league teams. I know how disappointing it was for Brentford fans in my constituency of Feltham and Heston to be unable to see their team’s last ever games at the old stadium last season. I am particularly concerned about the challenging few months that Brentford FC faces, particularly when it has just invested in its new stadium, which now sits empty. The financial pressure on local clubs is growing, and the Government urgently need to provide clubs and fans with some clarity and listen to their needs.”
“I mentioned the contribution of clubs to our communities—a point also made by many of my Labour colleagues, including the shadow sports Minister, my hon. Friend the Member for Wirral South (Alison McGovern), who will attend the debate. During lockdown, Brentford FC Community Sports Trust delivered more than 1,000 activity packs to children and families, supported more than 100 young carers who were shielding, ran virtual youth clubs and provided mentoring support. I thank Jon Varney and others for their leadership during this time. Most of all, what makes football special is the fans. Not only are they the life and soul of football, creating electric atmospheres on match day; they play a vital role in boosting teams and players, and sustaining clubs financially.”
“Football is also one of the most heavily regulated areas of crowd management, which means that clubs have considerable experience of handling and dealing with crowds in all different circumstances. There has been concern that the Government’s treatment of football and of other businesses has been inconsistent. Instead, football should be seen as a standard bearer for how businesses could continue to operate responsibly and in accordance with Government guidance. Football needs a clearer road map from the Government on how football fans will be able to return to grounds when and where it is safe to do so. An ability to plan now could result in fans returning more quickly, particularly in lower-tier alert areas, following the end of national restrictions.”
“I welcome the contribution of the English Football League and the constructive way in which it and others have engaged in the debate about football spectator attendance. It recognises that we all want fans to be able to return to stadiums as soon as it is safe to do so, and that the current situation is a result of the pandemic. In partnership with the Department for Digital, Culture, Media and Sport and the Sports Grounds Safety Authority, the EFL has developed a stringent set of ground safety protocols that could result, initially, in around 25% to 35% of stadium capacity in use. Importantly, social distancing can be maintained and the protocols are fully compliant with NHS track and trace.”
“It is a pleasure to serve under your chairship, Mr Stringer. I congratulate the hon. Member for Stoke-on-Trent North (Jonathan Gullis) on securing the debate, and I am pleased to be able to say a few words. Football spectator attendance is an issue that has meant a huge amount across the country, with almost 200,000 people having signed the petition to call for spectators to be able to attend matches. The debate shows how football is much more than just a sport; indeed, it brings people and communities together. My local team, and that of my hon. Friend the Member for Brentford and Isleworth (Ruth Cadbury), is Brentford football club, which has been right at the heart of supporting our west London community and young people throughout the pandemic.”
“It is a pleasure to serve under your chairmanship, Mr Stringer. I thank the Minister for his opening remarks. He has had considerable dialogue with the hon. Member for Birmingham, Erdington (Jack Dromey), who I know is sorry that he cannot be here today. I will speak to Government amendment 9 and also Labour’s amendment 18 on his behalf. I also thank the hon. Member for Airdrie and Shotts for his interventions. We regret that the Government seek to remove the amendment made to clause 123 in the Lords. As the Minister is aware, there are grave concerns about the impact of the provisions in the Bill on open DB schemes, which includes many public sector schemes. Labour has been clear all along that we do not accept the premise that good DB schemes are not worth protecting.”
“The present amendment has two core objectives. The first is to support the ability of trustees to decide the funding and investment strategy for schemes, taking into account current and future maturity and liquidity, consistent with the trustees’ duty to invest assets in the best interests of members and beneficiaries. That is intended to protect schemes from any inappropriately risky or risk-averse requirements that would significantly adversely affect the affordability of schemes for employers and members. The second is to recognise that schemes are usefully and beneficially open to new entrants and should be allowed to remain so. The amendment is aimed at avoiding requirements in funding investment strategies that are likely to accelerate the closure of relevant schemes.”
“This concept is simply inappropriate for an open scheme.” —[ Official Report, House of Lords, 30 June 2020; Vol. 804, c. 681.] However, given that the Government do not wish to retain these provisions, Labour’s amendment 18, in the spirit of constructive engagement that we have maintained throughout this Bill, offers a compromise—as was noted by the hon. Member for Airdrie and Shotts—which aims to address the need for flexibility in the treatment of open schemes with the Government’s aim, which we share, to ensure that schemes plan appropriately for the long-term. The Minister said that this was not an appropriate compromise, but allow me to lay out our arguments for proposing it. In drafting amendment 18, we sought to address some of the concerns that were raised about clause 123, as amended in the Lords.”
“It sets out several factors for the Secretary of State to take into account in regulations regarding scheme funding, which include distinguishing between open and closed schemes, balancing scheme liquidity and scheme maturity, and ensuring that affordability of contributions for employers and members is maintained. Notwithstanding the Minister’s comments, I want to continue with our argument. A number of peers with considerable authority in the pensions world spoke in favour of the amendment. The Minister said he had spoken with some of them in recent days, including Baroness Altmann, who supported the amendment in the Lords. Baroness Altmann noted that the Pensions Regulator’s funding code seems “to want to drive DB schemes on a path to so-called de-risking, aiming for a particular date of maturity.”
“I thank the Minister for his intervention, and I am happy to see that that commitment continues to be made. Nevertheless, it is not least because DB schemes currently have 10.5 million members, with £1.5 trillion under management. The Minister will have noted that the Pensions Regulator recently made clear its desire to “develop an approach that works well for open schemes”, stating that it wishes to “secure a reasonable balance between protection of member benefits, fairness between schemes, and flexibility for schemes to fund and invest as they wish—especially where they have a strong covenant and a long-time horizon.” The new subsection (2)—as amended with this objective in mind—requires the Pensions Regulator to take a different approach to regulating the funding of open DB schemes, compared with those that are closed.”
“I beg to move amendment 17, in clause 124, page 118, line 23, leave out “an occupational pension scheme” and insert— “(a) an occupational pension scheme, or (b) a contract-based workplace scheme”. This amendment would add contract-based workplace schemes to obligations under this clause, as well as occupational pension schemes. I will keep my remarks on the amendment brief. In a sense, it builds on the positive work in the Lords on climate change by extending the provisions in the clause to contract-based workplace schemes as well as occupational pension schemes. I hope the Minister will agree that it is a common-sense extension of the welcome measures already contained in the Bill, and that it would ensure effective governance of all relevant schemes with respect to the effects of climate change.”