Helen Whately
MP for Faversham and Mid Kent · Conservative · United Kingdom
“Every holiday period, Kent and my constituency of Faversham and Mid Kent is brought to a standstill, and that has become much worse with the introduction of the EU entry-exit system, despite the fact that our ports and Eurotunnel have invested in the technology.”
“The situation could be horrific this summer: imagine people, including children and elderly people, and potentially pets, waiting in their cars in this heat for around 12 hours. It is a disaster. I implore the Minister to involve the Prime Minister—and, most likely, the right hon.”
“I congratulate the hon. Lady on securing the debate. She is making an important point about the fact that we need not just the minimum but the maximum. We need really strong commitments. The Cleve Hill solar development in the village of Graveney in my constituency is huge. It has obliterated 900 acres of agricultural land and marshland.”
“On the point about considering the community benefit, what counts as a community is really important. In some circumstances—this has come up in my local area—a large geographical area is considered as a community, even though the number of households that are very substantially affected is very small.”
“I associate myself and those on the Opposition Benches with the Secretary of State’s comments about the outgoing permanent secretary of the Department for Work and Pensions. I am sorry that this may be my last exchange with the Secretary of State, as we await the coronation of the king in the north and the appointment of his new team.”
“I heard no commitment from the Secretary of State that the benefits bill was going to come down any time soon. Labour can change its leader, but it is still the same old welfare party. The right hon. Member for Makerfield (Andy Burnham) told us this morning that he is going to bring “Manchesterism” to the whole country.”
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“The situation could be horrific this summer: imagine people, including children and elderly people, and potentially pets, waiting in their cars in this heat for around 12 hours. It is a disaster. I implore the Minister to involve the Prime Minister—and, most likely, the right hon. Member for Makerfield (Andy Burnham), as this could happen under his watch—in the negotiations with the EU to suspend these checks in advance, not to wait and see, so that we can stop these queues happening?”
“Every holiday period, Kent and my constituency of Faversham and Mid Kent is brought to a standstill, and that has become much worse with the introduction of the EU entry-exit system, despite the fact that our ports and Eurotunnel have invested in the technology. I understand that it is not working because the French have not managed to get it to work. I disagree with the Minister that everything is fine when Operation Brock is on—Operation Brock is terrible for my area. However, I agree with his point that this has nothing to do with Brexit. I hate to break that to the Liberal Democrats and others who have being trying to make that argument, but the problems have nothing to do with Brexit.”
“I congratulate the hon. Lady on securing the debate. She is making an important point about the fact that we need not just the minimum but the maximum. We need really strong commitments. The Cleve Hill solar development in the village of Graveney in my constituency is huge. It has obliterated 900 acres of agricultural land and marshland. While it has been in construction, there has been enormous disruption to the local village and schools, and damage to the roads and to people’s properties. I want my constituents to get proper compensation and ongoing economic benefit—not just lip service in the form of a playground or cycle path, but something that recognises the massive impact of the development on their lives.”
“On the point about considering the community benefit, what counts as a community is really important. In some circumstances—this has come up in my local area—a large geographical area is considered as a community, even though the number of households that are very substantially affected is very small. It is what they want that should really matter. Yes, of course I care about what the wider community wants, but we need to think about the small number of households in which there has been a real impact on people’s day-to-day lives.”
“Well, there we heard it a moment ago: a Labour Back Bencher calling for yet more money to be spent on benefits. What we should be doing is talking about all the households who are avoiding the cap, when 100,000 households get over—”
“Some 100,000 households get over £50,000 in benefits, and 16,000 households get over £60,000 in benefits. That gives them the same income as the top 10% of earners in this country. British people are sick and tired of footing the bill for “Benefits Street” and seeing welfare claimants living lives of luxury at their expense. The right hon. Member for Makerfield (Andy Burnham) has called for more collaborative politics, so will the Minister adopt our plan to toughen up the benefits cap and save £1 billion off the benefits bill?”
“I associate myself and those on the Opposition Benches with the Secretary of State’s comments about the outgoing permanent secretary of the Department for Work and Pensions. I am sorry that this may be my last exchange with the Secretary of State, as we await the coronation of the king in the north and the appointment of his new team. I hope that the right hon. Gentleman is not sacked for telling the truth about his fellow Labour MPs, who just want to put up taxes to pay for more benefits. Does he think that our next Prime Minister will have the courage to take on those Labour MPs and bring down the benefits bill, or will the new PM bottle it like his predecessor did?”
“I heard no commitment from the Secretary of State that the benefits bill was going to come down any time soon. Labour can change its leader, but it is still the same old welfare party. The right hon. Member for Makerfield (Andy Burnham) told us this morning that he is going to bring “Manchesterism” to the whole country. In Manchester, he is spending nearly three quarters of a million pounds on helping asylum seekers to claim benefits. British people are tired of seeing their hard-earned money being spent on handouts to foreigners. We cannot be a cash machine for the world. Does the Secretary of State think that this is a good use of taxpayers’ money?”
“The local government reorganisation needs to be looked at again, and I hope that my hon. Friend agrees that, at the moment, the proposals are a shambles.”
“My hon. Friend is making a really important point about local identity and about how important it is that Ministers listen. We have a Minister here today listening. I want to talk about the local government reorganisation in Kent, an area that has an incredibly strong historic identity. It is actually England’s oldest county, with a history going back more than 2,000 years—it was the Kingdom of Kent—yet under this local government reorganisation, Kent is due to be broken up, and it is not even getting a mayor. It will be fragmented into multiple parts. The population between Kent and Medway is over 2 million. At the moment, Kent has an identity and a voice. It is set to lose both through this local government reorganisation, and the case for substantial savings simply is not there.”
“We have had a few days of hot weather, and yet again we have had water outages in my constituency and across Kent, on top of what we saw earlier this year and last year. Residents, businesses and livestock owners are frustrated, but they are also really worried, because getting water is the most basic thing in this country. It is right that the chief executive and chair of South East Water have gone; my anger with them was particularly about their response and how they have handled these outages. However, there is a longer-term problem with water infrastructure and supply that will not be fixed overnight. In my constituency, 20,000 more houses are in the pipeline for the next few years, and thousands more in the surrounding area. Is there enough water for those thousands of additional houses in rural Kent?”
“(Urgent Question): To ask the Secretary of State for Work and Pensions to make a statement on the publication of the Milburn report on young people and work.”
“The answer is jobs, to back businesses, to cut taxes, to get rid of red tape, to get government out of the way and to reform welfare—”
“This is urgent, but where is Labour’s urgency? This is not the first time Labour has let down young people: the number of NEETs soared to 17% after Labour’s last stint in government. The Conservatives turned that around to less than 10% in 2019. Of course, covid undermined that progress, but the Labour Government have turned a post-pandemic problem into a crisis by taxing jobs, tying up businesses in red tape, making it riskier and more expensive to hire a young person, and destroying hundreds of thousands of jobs in retail and hospitality. Like many young people, one of my first jobs was working in a local pub, but Labour has pulled the plug on that opportunity for this generation. Whenever we do get to hear Labour’s plans, we know what they will be: spending more money and taxing people more to pay for it. That is the wrong answer.”
“This is a disaster for our country, our economy and, worst of all, for all those young people: Labour’s lost generation. The Minister said that it started under us—yes, the numbers did start going up from the pandemic, so this was not a surprise for Ministers—yet here we are after almost two years of Labour in office and it still has no plan. All it has done is make the situation worse, and of course commission this big report. I welcome Alan Milburn’s contribution—it is a serious analysis—but Milburn himself says it is just a diagnosis; there are no solutions, actual answers or policies. In fact, he even tells us that the things the Government have been doing—their “piecemeal” programmes—are not going to work. He also says that after six months of inactivity, young people are far less likely ever to work.”
“I am grateful to you, Mr Speaker, for granting the urgent question. It is a shame that the Minister had to be dragged here. Last week, the Secretary of State was only too eager to talk about this report on the telly. Where is he today? Why so quiet now? I think we all know. The Secretary of State has been caught out telling the devastating truth about Labour MPs: “who can we tax in order to pay benefits to others”? That is what Labour MPs really think, and that is what the Government have done. They have put up people’s taxes, spent more on benefits and left hard-working people with less to live off. Once again, Labour’s shenanigans are getting in the way of something we really should be talking about. Every morning, a million young people wake up in Britain with nothing to do and nowhere to go.”
“Millions have drifted out of work, and for many, claiming benefits simply makes more sense. For those who are working, each month they are seeing their earnings disappearing in higher taxes and higher bills, with nothing left over. No wonder they are fed up. People who are doing the right thing are paying for people who have opted out. And what is Labour doing about it? Absolutely nothing. The Government are making a big mistake because the bald fact is that alarm- clock Britain is sick of paying out for “Benefits Street”.”
“Let me read from an email that I received recently from a constituent; I will call her Sandra. She says: “I am writing to you with utter frustration. We work so hard and for what? What is the point of working please tell me. To watch everyone else do nothing and get paid more than you! I’ve done the benefit calculation online and I’d be better off quitting my job…I’d be better off getting universal credit…how is that normal or fair?” My constituent is far from alone. I have heard that feeling expressed time and again since I have been shadow Secretary of State—on the doorsteps, in the pub, in the supermarket, on the train and all over social media. Beyond Westminster, people are despairing. Family breadwinners are losing their jobs, homes are being sold to pay the bills and young people are losing hope.”
“I respect the Secretary of State. He has talked at some length about what is wrong with the welfare system, but the fact is that there is no welfare Bill in the King’s Speech. I reckon he is stuck between a rock and a hard place: he knows the benefits bill is out of control; he knows that the public are sick of seeing their taxes go on ever higher welfare handouts; he even knows how the savings could be made because I have told him [ Laughter. ] They are laughing, but they are the problem. The Secretary of State also knows that the MPs behind him will have none of it. With the Prime Minister clinging on by a thread, no wonder there was no welfare Bill in the King’s Speech. Here is the problem: failure to grip welfare puts the Government dangerously out of touch with people out there—the people he, I and all of us are here to serve.”
“For every day of inaction, hard-working taxpayers pay the price. Doing nothing costs money. The welfare bill will reach £170 billion by the end of the decade and that money could be so much better spent on things such as defence or making our streets safer or—think of this—it could be left in people’s pockets for them to spend.”
“Yesterday, the Prime Minister had a chance—one last chance—to hit reset, reverse those trends, get people off benefits and bring down the welfare bill. But with his back against the wall, it is no surprise that the Prime Minister’s King’s Speech contained none of that. While hundreds of thousands of people struggle to find work, the Prime Minister is only interested in protecting one job: his own. Yes, the Secretary of State can claim that he is doing something—his work experience programmes, his youth schemes, the savings-free Timms review and all that—but we all know that that is just tinkering at the edges. The Government tried welfare reform last summer and failed. Now, they have given up altogether. They had no plan when they got into office and they still have no plan now, and that matters.”
“I hate to tell the hon. Gentleman, but Labour is in charge now. It has had nearly two years and nothing is changing. You do not have to take my word for it, Madam Deputy Speaker; here are the numbers. Over 8 million people are claiming universal credit, almost 4 million people are claiming sickness benefits and over 600,000 households are getting over £32,000 a year in benefits. That is more than the take-home pay of the average British worker. Ninety-one thousand households are getting over £50,000, which is enough to put them in the top 10% of our nation’s earners, and 16,000 are getting over £60,000 in benefits every single year. A person who works would have to earn over £70,000 to have that. All that is costing the country £140 billion a year. People know when they are being taken for a ride.”
“Labour’s answer is always the same: tax more and spend more of other people’s money, and it is the wrong answer. Sometimes in life you have to pick a side. We have picked one: we are on the side of people who get up each day and go to work. They are doing the right thing, and we back them. Sometimes things go wrong and people need help. That is why welfare should be a safety net, not a lifestyle choice. Labour have made their choice: it is to carry on as if nothing is wrong. Yesterday’s King’s Speech was a chance to fix things, and they blew it.”
“The Secretary of State should feel free to do so too, and though the MPs behind him will hate it, we are here to help. This is the most surreal King’s Speech debate I have ever taken part in. People out there are angry, frustrated and fed up. They can see the country is not working. They want the Government to fix it, but Labour are too busy working out who should be in charge. The saddest thing is that it will not make a difference. They can change their team captain, but they are still the same team. I have heard them cheer on taxes for farmers, family businesses and schools. I have heard them cheer for lifting the two-child cap. I have heard them argue against welfare savings. They think you fix poverty by giving out free breakfasts, paid for by people who are struggling to pay the bills themselves.”
“We will bring back the two-child benefit cap, stop handouts to foreign nationals, stop sickness benefits for anxiety and ADHD, bring back face-to-face assessments, ban “sickfluencers”, reform fit notes and restore the household benefit cap to its original purpose of ensuring work always pays better than benefits. No more gaming the system, no more free cars for tennis elbow or acne—Britain will no longer be a cash machine for the world. People have had enough. They can see our welfare system is not working. It is not even working for people who are seriously ill or disabled. We are not keeping our plan secret; it is all out there. Other parties are adopting our policies. Reform, for instance, has not been shy about doing so, although it has been confused, and its Members are not here today.”
“I am sure that many of those on the Government Benches care about our country, but caring is not enough. The question is: what are they going to do to fix it? If the King’s Speech that we are debating today tells us anything, it is that they do not know. The only things they can think of will make the situation worse; and on welfare, they have given up. I believe in learning lessons whenever one can. One lesson that Labour Members should learn is to make good use of time in opposition; work hard, think hard and make a plan. That is what we have been doing, and that is why we have been able to set out an alternative King’s Speech, which has more in it than the actual King’s Speech. Take our plans for welfare—and to be clear, these are just our plans so far. We have a plan to reform welfare and make £23 billion in savings.”
“They have laughed and jeered at us, but they are not laughing now because they have found out that governing is hard. They promised voters change, but the only change that most people have seen is that they are poorer. Who knows what they got up to in opposition? Clearly, it was not working out what they would do if they won the election. The Parliamentary Secretary to the Treasury is chuntering. I know that yesterday he called the Leader of the Opposition “rude” when, actually, she was just telling the truth. He does not like to hear the truth. Maybe he should do a little less talking from the Front Bench and a little more listening. Being in power is not an end in itself; what matters is what someone does with the power that voters trust them with.”
“Many businesses have stopped hiring; others are letting people go. Businesses tell me that they are getting hundreds of applications for jobs that they might have struggled to fill a couple of years ago. No wonder that there are 700,000 graduates on out-of-work benefits. Youth unemployment is at over 14%. This is a disaster. Young people want to get their lives going, earn money, pay their own way, save for a car; instead, hundreds of thousands are stuck. The Secretary of State knows that. That is why he has frantically announced a flurry of schemes at the cost of £2.5 billion. Obviously, a work placement is better than nothing, but the young people I speak to want jobs, not Government-funded work experience. Less than two years ago, the country voted us out and Labour Members in.”
“Oh dear; what a shame. There were no ideas for savings there at all. If the hon. Gentleman thinks that will get him a job under the next Labour leader, I am afraid that he will have to keep trying. Labour claims to be the party of working people, but the facts do not back that up. Labour always leaves office with unemployment higher than when it arrives, and it is on track to do that again. There are now over 300,000 more people unemployed than when this Government came to power. Their policies—the jobs tax, the Employment Rights Act—have actively killed jobs. Now, as mentioned in yesterday’s King’s Speech, we have the regulating for growth Bill. You couldn’t make it up. Employers are being asked to swim against the tide with bricks in their pockets, and now the Government are planning to make it worse.”
“Here we have Labour doing what it always does: thinking that the Government are the answer, with the state going where it has no place to go. When the Conservatives return to government, we will remove mandation from the statute book entirely, because at the heart of this policy lies a dangerous assumption that Ministers in Whitehall know better than trustees, fund managers and markets on how to invest the public’s pension savings. I have yet to meet anyone who wants a politician managing their pension, and pensions belong to the people who earn them, not Government Ministers. It is as simple as that.”
“Step by step, and under pressure, they have been forced to narrow it, constrain it and hedge it with safeguards. Why? Because the original power was indefensible, and because the Government knew that the concerns were real. The work that we have done has obliterated the Government’s original proposal. As it stands now, the mandation power looks nothing like how it was first imagined. What began as a sweeping ministerial power grab has been stripped back, pared down and boxed in on all sides. Only now, after our intervention, has it become at least palatable. It is a vestige of its former overmighty self—a shrivelled husk. Let me be clear: we do not believe that the Government should direct private capital, or that Ministers should interfere in investment decisions that are properly left to trustees and markets.”
“That matters, because fiduciary duty is sacrosanct and must be protected. Nothing is more important in a modern pension system than the duty to act solely in the best interests of savers. That duty is the foundation on which trust in our pension system rests. This amendment means that in a conflict between mandation and fiduciary duty, fiduciary duty wins—again, another important retreat. Finally, the Government have agreed to remove discrimination between investment vehicles by clarifying that both direct and indirect holdings in the relevant asset classes count towards compliance—the final retreat. Every one of those changes tells the same story: the Government introduced a power that was too broad, too vague and too dangerous.”
“We have been consistent in our view that mandation is not the right solution, but we accept that requiring independent assessment before the power can be exercised is a safeguard against ministerial overreach, and I appreciate the Pensions Minister’s assurances from the Dispatch Box on the weight of evidence required. The Government have also accepted that the reserve power cannot be used before 2028—again, another retreat. The Government have further strengthened the savers’ interest test following yesterday’s amendment. Schemes will no longer have to prove that compliance would likely cause “material financial detriment”. Instead, they need only demonstrate that compliance is likely not to be in the best interests of members, thereby aligning the test with trustees’ existing fiduciary duties.”
“Secondly, on sunset and single-use restrictions, the Government have brought forward the expiry date of the reserve power to 2032, if unused. They will repeal the whole regime by 2035 unless it is renewed by fresh primary legislation, and have limited the core mandation power so that it can be exercised only once—another retreat. Thirdly, the scope has been narrowed. Mandation can now apply only to the main default auto-enrolment fund, not the entire pension scheme or every pot—again, another retreat. Today we have had further concessions. The Government now accept that before this power can be exercised, regulators must conduct an independent assessment of whether a genuine collective action problem exists—whereby no one wants to be the first mover—and whether that problem is inhibiting investment in private markets.”
“I was clear from the outset that the power was dangerous and had no place in the Bill. After sustained pressure from the industry, from the other place and from this side of the House, the Government have, very slowly, been forced to row back. They have rowed back from a power grab that threatened trust in auto-enrolment pensions and risked damaging savers’ retirement incomes. Let us be clear about what those concessions amount to. First, on allocation limits, the original Bill contained no cap whatsoever on how much of a saver’s pension could be mandated into specified assets. Now, after pressure, the Government have imposed hard limits. No more than 10% of a default fund may be directed into qualifying assets, and no more than 5% may be directed specifically into UK assets. That is a major retreat from the original proposal.”
“It would have allowed Ministers to direct their investment in whatever way they saw fit. What happened the moment that became clear to people? Members sitting opposite and, indeed, behind me—not least those in Reform UK—were already queuing up with pet projects and struggling sectors. They thought that savers’ money should be used for net zero schemes, steel and renationalising water. They were not proposing those measures on the grounds of the return on investment for savers, and the income that they would generate for people’s later life; that much is obvious. But we said no—no to politicians having that power, no to Ministers directing pension savings into their pet projects, and no to overriding the interests of savers in favour of politicians desperate for access to capital.”
“Let me begin by welcoming the Minister back to his place—we missed him last night, and it is good to see him back in the Chamber. Throughout our many debates, we have broadly agreed on the policy intent behind most of the Bill, but as I have said time and again, agreement on the principles of a Bill is not the same as offering the Minister unqualified support for every measure in it, particularly the power contained in clause 40, the power of mandation—or the reserve power, as the Chief Secretary calls it—which enables Ministers to instruct pension funds where to invest. When the Bill was first introduced, that mandation power was truly breathtaking in its scope. It was extraordinary—an unconstrained power that would have allowed the Secretary of State access to 100% of at least £400 billion-worth of auto-enrolment default pension funds.”
“His Government need to change tack and back businesses to create opportunities for the next generation. I am on their side—isn’t he? Will he help the Chancellor understand before it is too late?”
“I was disappointed that the Secretary of State did not answer the question put by my hon. Friend the Member for Fylde (Mr Snowden), so let me help him. Unemployment among 18 to 24-year-olds is at 14.3%—that means that one in seven young people is unemployed. There are thousands fewer jobs and thousands fewer vacancies under the right hon. Gentleman’s Government. I speak to young people across the country, who tell me that it is desperately difficult to get a job, and it is no wonder. His Government have made it much harder for businesses to employ people, especially young people. I appreciate that the Secretary of State may be trying his best with his plethora of work schemes, but they are just a sticking plaster for the damage that the Chancellor has wreaked. Governments do not create jobs; businesses do.”
“Mr Speaker, “We cannot defend Britain with an ever-expanding welfare budget”. That is the view of the author of the Government’s strategic defence review, the Labour peer, former Labour Defence Secretary and former Secretary-General of NATO Lord Robertson. Which will the Secretary of State choose: defending the country or paying people not to work?”
“Let us put some facts on the table, because it is time for the Government to confront the hard choices. We are spending less than 2.5% of GDP on defence, but 5.3% of GDP on welfare. Six million people of working age are living on benefits. Under the Secretary of State’s Government, over a million more people have gone on to universal credit and hundreds of thousands have gone on to sickness benefits—and the Government are choosing to spend even more by scrapping the two-child cap. We cannot go on like this. When will he and the current Prime Minister come forward with a plan to bring the welfare bill down? Or is it like with Sir Olly Robbins: another topic where his judgment and the Prime Minister’s differ?”
“I have yet to find anyone who wants to trust a politician with their hard-earned pension savings, but that is exactly what the Government are trying to force on the country’s savers through this Bill. Today the Minister finds himself tasked with defending the indefensible, and one provision is preventing an otherwise good Bill from passing. The Government amendments make mandation less bad, but if something is wrong in principle, it does not become right in smaller doses. I leave the Government with one simple message: remove mandation, and the job is done—this Bill will pass.”
“It tells people that the Government will take a shortcut to getting investment in the UK by forcing pension schemes to do so, rather than fixing the underlying problems. I do not think that the Minister’s colleagues have really thought this through. The easy answer is rarely the right answer. Where does that leave us? It leaves us at an impasse, with agreement on the diagnosis but profound disagreement on the prescription. We all want more pension investment in the UK, and the Conservatives support moving from a focus on cost to a focus on value. We support removing barriers to the Mansion House accord, but there is no consensus for state compulsion. Pensions belong to the people who earn them, not Ministers.”
“Yet the Government are putting at risk this success story, around which there has been great political consensus, and the consequences do not stop with pension savers. What signal does this send to the wider investment community? We hear that major City reforms are to come in the King’s Speech, but will the market really greet those reforms with confidence if this Bill becomes law with mandation in it? Confidence would be created if investors could see that the Government are committed to making the UK a good place to invest in. Mandation sends the opposite message. It tells people that we have a Government who are prepared to go where the UK state does not usually go: to get involved in the allocation of private capital.”
“Let us remember whose pensions we are talking about here. Who is most likely to suffer if the Government turn out to be a poor asset manager? The millions of workers who contribute via auto-enrolment—people who have never chosen an investment strategy, but who trust pension providers to do the right thing on their behalf. Those people are not poring over fund fact sheets; they are getting on with work and supporting themselves and their families, hoping that one day they will be able to retire with financial security. This policy asks those savers to place their trust not in pension managers, but in Government Ministers. In doing so, it risks undermining the very trust on which auto-enrolment depends. We can debate whether the level of auto-enrolment is right, but no one challenges whether it is a good thing overall.”
“Under the amended Bill, schemes must still prove likely financial harm before they are allowed to do what is best for savers. That misunderstands the principle at the heart of fiduciary duty. Trustees should not need state approval to act in the best interests of their members. These amendments just tinker at the margins; they do not fix the flaw in the policy. I have been talking in somewhat technical terms, but I want to remind the House of the consequences of what we are talking about. If the Government push pension schemes into the wrong investments, those investments underperform and savers end up with weaker returns, who carries the can? Not the Minister, who has stepped in valiantly today, and not the Government, who legislated for this power. It will be pensioners, who will retire with less.”
“Instead of having to prove that mandation “would” cause material financial detriment, schemes will now need to show that such detriment is just “likely”—we have gone from “would” to “likely”. Frankly, if the Minister thinks that this one-word change offers a truly robust safeguard, I urge him to think again. The need for these amendments tells its own story: the Government accept that mandation risks conflicting with the duties that trustees and pension providers owe to savers. If no such conflict existed, there would be no need at all for an exemption process. The right to appeal, enhanced through today’s amendments, demonstrates that Ministers accept that mandation may force schemes away from doing what is in their members’ best interests.”
“At the moment, if a pension scheme believes that complying with the Government’s mandation power would not be in the members’ interests, it may apply for an exemption, but to secure one, it must show that compliance would cause “material financial detriment” for members. That is an extraordinarily high bar. The Government have heard the concerns raised in this House and the other place, particularly by Lady Bowles, and have now brought forward further amendments. The Minister told us that the amendments will strengthen the exemption process. Well, they do make it slightly easier for schemes to argue that a mandated investment allocation may damage returns.”
“It cuts across the fundamental duty of trustees to act in the best interests of savers; instead, that duty is trumped by Government requirements in law. It means that pension savings, or a share of them, will be put to work to serve the interests of the Government, not the interests of the saver who wants their pension to provide them with a decent income in later life. Perhaps most seriously of all, mandation risks undermining public trust in the pension system. That is why the power is not just unnecessary; it is dangerous and has no place in this Bill. I will now turn to the Government’s latest amendments on mandation that are before us today, which apply to the so-called savers’ interest test.”
“Friend the Member for Wyre Forest (Mark Garnier) at each stage of this Bill, mandation is flawed both in principle and in practice. The Government may call it a reserve power, but everyone knows what it is: a threat hanging over pension schemes if they do not fall into line. The Mansion House accord was a voluntary agreement built on trust, with mutual commitments between industry and the Government. Mandation replaces trust with a threat in law. Why would the pension sector, or in fact any sector, ever try to come together and agree a voluntary pact with the Government again if it is hammered into law a few months later? Mandation puts in statute a power that, though more limited in its current manifestation, could be put to all manner of uses.”