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Pension Schemes Bill 2025-12-03
03 December 2025
Lead MP
Torsten Bell
Debate Type
General Debate
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Other Contributors: 68
At a Glance
Torsten Bell raised concerns about pension schemes bill 2025-12-03 in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
Proposes a new clause that allows expenditure for the Ombudsman for the Board of the Pension Protection Fund to be paid from money raised by the general levy payable by occupational pension schemes and removes the power to impose a separate levy.
Torsten Bell
Lab
City of Durham
Proposes new clause enabling Ombudsman expenditure to be funded through the general levy rather than a separate levy, aiming for efficiency and ensuring the Ombudsman's role is adequately supported.
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Various MPs
not specified
The amendments proposed include new clauses requiring the Secretary of State to review the impact on retirement incomes, establish investment funds for social and economic benefits, review mandated investment powers and their impacts, increase compensation rates for PPF members who have not reached normal pension age, publish annual cost estimates for increasing compensation for surviving spouses or partners of PPF members, cap management expenses for Local Government Pension Scheme administering authorities, require investments to be compliant with UK's duty on international law, divest from oil and gas companies within 5 years. Additional amendments ensure principles apply during wind-up stages and that surplus funds can contribute to pension advice services.
Olly Glover
LD
Didcot and Wantage
Welcomed government amendments but noted they would be of little use for those such as AEA Technology pension campaigners who have been denied a route to redress despite Select Committee reports and National Audit Office findings. He invited the Minister to reconsider his decision on new clause 1.
Sean Woodcock
Lab
Banbury
Congratulated the Chancellor for announcing in last week’s Budget that decades of Tory Governments had dithered and delayed, while pensioners lost out. He asked how much those affected would benefit from changes incorporated into the Bill.
Al Pinkerton
LD
Surrey Heath
Expressed concern about constituents who often worked for American companies that are refusing to offer pre-1997 uplifts, leaving pensions outside both PPF and FAS. He requested reassurance on how pensioners can survive on diminishing returns.
Nia Griffith
Lab
Llanelli
Raises scepticism among pensioners about trustees' efforts to force companies to give a decent index-linked rise. Asks for a meeting with the minister and trustees from affected companies like 3M and Hewlett Packard Enterprise.
Torsten Bell
Department for Work and Pensions
Agrees to meet Dame Nia Griffith, discusses changes giving trustees greater leverage in discussions with employers on discretionary increases. Mentions the need for trustees to act in members' interests regarding investment duties, climate risk, and living standards.
Torbay
Asks about the timescale for proposals related to trustee consultation, focusing on clarity and future responsiveness.
Peter Swallow
Lab
Bracknell
Praises the minister's announcement on trustee consultation and seeks assurance that pre-1997 indexation issues will be kept in mind during consultations.
Julian Lewis
Con
New Forest East
Expresses concern about perceived discrimination against private defined-benefit scheme members who do not benefit from changes introduced in the Budget, questions whether more can be done for them.
Julian Lewis
Con
New Forest East
Critiqued the minister's proposal regarding indexation in pension schemes outside of PPF, emphasising that trustees are constrained and may not have sufficient leverage to negotiate improvements.
Kirsty Blackman
SNP
Aberdeen North
Called for a clear timeline on consultations and the introduction of legislation. Asked for clarification on whether primary or secondary legislation will be used, and expressed support for providing trustees with more guidance.
James Wild
Con
North West Norfolk
Supported many aspects of the Bill but criticised it for not addressing pensions adequacy adequately. Raised concerns over taxing people's incomes and savings through the higher-tax Budget. Suggested a review within five years to recommend further measures on pension adequacy, and discussed issues with eligibility conditions and indexation for pre-1997 service pensions. Criticised mandation powers as going against trustees' fiduciary duty.
Julian Lewis
Con
New Forest East
The right hon. Member supported the hon. Lady's speech and mentioned that ExxonMobil pensioners in his constituency face similar issues.
Alan Gemmell
Lab
Central Ayrshire
My hon. Friend thanked Patricia Kennedy for her hard work on putting together facts and figures regarding pre-1997 pensions justice campaign, emphasising the importance of enabling pensioners to receive inflation-based increases.
The hon. Member expressed gratitude for highlighting Atos' failure in providing index-linked pensions, referencing constituents who face similar situations.
My hon. Friend suggested that if the Government can use their role to increase PPF pensions, trustees of problematic companies should act similarly to address injustices faced by pensioners.
Torsten Bell
Con
Pensions Minister
The Minister acknowledged the need for guidance from the Pensions Regulator to provide clarity and support to trustees in addressing this issue, though he did not commit fully to legislative changes proposed.
Julian Lewis
Con
New Forest East
Sir Julian applauds what was said about AEAT pensioners' difficulties, highlighting that a previous Conservative pensions Minister promised to work on a redress scheme but changes of Minister and Government meant no progress. He calls for reflection on the injustice faced by these pensioners.
Steve Darling
SNP
North East Fife
The hon. Member questions whether it is right to balance financial books on the backs of the Pension Protection Fund surplus and suggests that significant surplus in the Pension Protection Fund could be released to support pensioners with the cost of living crisis.
Sarah Olney
LD
Richmond Park
The hon. Member raises concerns about mandation creating the risk of reducing returns on investments and suggests incentivising pension funds through the creation of appropriate investment vehicles to encourage productive investments in housing and social care.
Tewkesbury
The hon. Member highlights new clause 7 as an opportunity for pension justice, addressing pension issues faced by constituents who were employees of Gulf Oil before its merger with Chevron.
Poole
The hon. Member aims to make occupational pensions more progressive through amendments that direct pension funds towards socially beneficial projects such as green technology and social housing, disinvestment in fossil fuels and illegal wars abroad, and worker representation on future pension boards.
Roger Gale
Con
Herne Bay and Sandwich
The hon. Member recognises the good in the Pension Schemes Bill and expresses sympathy with new clause 24 proposed by the hon. Member for Llanelli, stating he would vote for it without any question.
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Unnamed MP
Conservative Party
Sandwich
The speaker expressed concern about the complexity of the Government's proposals for pension indexation, particularly focusing on Pfizer in their constituency. They supported new clause 22 and criticised companies that have neglected their duties towards pensioners.
Debbie Abrahams
Labour Party
Oldham East and Saddleworth
Ms. Abrahams supported the Government's new clauses related to pre-1997 pensionable service indexation, emphasising that it would benefit more than 250,000 pensioners. She highlighted the work of the Pensions Action Group and acknowledged the Pension Protection Fund (PPF) for its efforts in addressing this issue.
Manuela Perteghella
Liberal Democrat Party
Stratford-on-Avon
Ms. Perteghella spoke to two new clauses: one on easing the burden of forms for terminally ill individuals seeking support from pension funds, and another addressing fossil fuel investments in pension schemes. She argued that these changes would improve governance and resilience within the pension system.
Jim Shannon
DUP
Strangford
Mr. Shannon raised concerns about thresholds for sudden deaths or illnesses and urged the Minister to address this issue during his concluding remarks.
Edward Morello
Liberal Democrat Party
West Dorset
Mr. Morello lent support to Ms. Perteghella's amendment concerning fossil fuel investments, emphasising that pension funds should not undermine the future of future generations.
Member
Party Not Specified
Not specified
Supports new clause 11, which would introduce an independent review into state deduction in defined benefit pension schemes. Criticises HSBC’s outdated clawback policy and its impact on former employees. Advocates for fairness, greener policies, and ethical measures to address historical injustices.
Liam Byrne
Lab
Birmingham Hodge Hill and Solihull North
Calls for clarity in fiduciary duties of pension fund trustees to encourage investment in the UK. Advocates for a new clause that would help channel savings into productive assets, such as affordable homes, clean energy, and social care infrastructure.
Ann Davies
PC
Caerfyrddin
Supports addressing pension injustices in south Wales, including the British Coal staff superannuation scheme scandal and lack of indexation for pre-1997 pension accruals. Proposes new clauses to address these issues, acknowledging the long-standing fight by former mineworkers and Allied Steel and Wire workers.
Scott Arthur
Lab
Edinburgh South West
I thank the Minister for introducing the debate. I support new clauses 31-33 and new clause 22, highlighting agreement on pre-1997 measures announced in the Budget last week. The Government’s confirmation of inflation protection for pre-1997 pensions is an issue I have campaigned on alongside Members from across the House. More than a quarter of a million PPF and FAS members have seen their pension frozen, but this reform sends a message that they have not been forgotten and that they have been listened to. This decision signals an injustice acknowledged by the Government, encouraging private sector companies to look at this matter and improve their own schemes. The surplus release enabled by the Bill may underpin additional corporate investment in the UK; however, there is a risk that money will be moved outside the UK and into the bank balances of shareholders in other countries. I commend the Minister for announcing that his Department will consult on trust-based pension scheme governance, strengthening the member voice and supporting lay trustees working closely with the Pensions Regulator to ensure trustees act in the interests of all beneficiaries.
I appreciate—but have a few criticisms of—the Government’s position throughout the Bill. The timing is appreciated, but there are questions I potentially would have asked and amendments I may have tabled if I had seen those Government amendments in advance. On 1997 indexation, I apologise for mentioning FSA instead of FAS. However, I am concerned that the uplift does not involve a one-off payment to bring pre-1997 contributions up to some level. The PPF levy is still able to meet its financial obligations with the proposed changes by the Government; however, I would appreciate if the Government considered the possibility of a small one-off addition to the pre-1997 accrual that members have.
Kirsty Blackman
SNP
North East Fife
The hon. Member for North East Fife emphasises the importance of redefining best interests beyond just financial returns, advocating for investments that contribute to a more equal and productive society. She supports new clause 3 on terminal illness benefits simplification, the consolidation of small pots, and guided retirement advice, while expressing concerns about pre-1997 indexation.
Liam Byrne
Lab
Birmingham Hodge Hill
The right hon. Member for Birmingham Hodge Hill aligns with the hon. Lady’s view that best interests should be defined to include more than just financial returns, supporting a wider economic and social impact.
Dr Arthur questions the silos and barriers between organisations when it comes to claiming benefits but finds them collapsing rapidly upon a person's death. He suggests that this highlights a need for better inter-agency communication and coordination.
Jayne Kirkham
Lab/Co-op
Truro and Falmouth
The hon. Member for Truro and Falmouth welcomes progress on the pre-1997 fund but expresses concerns about costs involved in transitioning to another pool, which may negatively impact members.
Speaker
Party Unspecified
Cornwall
The speaker supports the Bill and its aims, highlighting how Cornwall benefited from local infrastructure investments. They noted concerns about potential loss of local links in larger pools and stressed the importance of responsible investment policies within the pool framework. The speaker emphasised maintaining high standards for social impact and ESG matters.
Vikki Slade
LD
Mid Dorset and North Poole
Vikki Slade welcomed the Bill's pension pot consolidations but urged the government to lift thresholds for small savers. She highlighted long-standing injustices faced by certain groups of pensioners, including AEA Technology pensioners, urging an independent review for justice. Concerned about DB schemes' surplus sharing and its effect on pensioners, she proposed amendments to ensure fairness in the process.
Orkney and Shetland
Acknowledged injustices faced by BP pensioners due to trustee decisions. He highlighted how pension values were eroded, supporting Vikki Slade's amendments for fairness in surplus sharing.
Welcomed the Bill and acknowledged strong actions taken by the Chancellor to support pensioners through raising the state pension. Highlighted benefits of simplifying the system for private pension savers, increasing returns and unlocking investment in the UK economy.
Bracknell Forest
Welcomes measures in the Bill to address pre-1997 defined benefit pensions, focusing on new clause 22 which calls for indexation of these pensions. Acknowledges the erosion of such pensions as an injustice but notes that legislating to index would put entire schemes at risk. Calls for further action to bring justice to pensioners with surplus schemes. Welcomes Chancellor's announcement to protect Pension Protection Fund accruals from inflation. Cites local constituency examples, including a constituent named Ed whose pension has increased only three times in nine years due to inflation erosion.
John Milne
Lib Dem
Horsham
Speaks to new clauses 8 and 13 of the Bill. Acknowledges intelligent measures but argues against sweeping powers of mandation, suggesting partnership as a better approach. Supports more investment in social housing, care homes, high streets, environmental schemes, and infrastructure. Welcomes Government's response to some amendments on pre-1997 pension injustices but calls for further action through the use of surplus savings. Argues that free universal pension guidance at age 40 could improve outcomes. Emphasises need for pensions services to offer free accessible guidance to under-saving groups such as women, ethnic minorities, and disabled people.
Elaine Stewart
Lab
Ayr, Carrick and Cumnock
Speaks to new clause 22. Acknowledges the work of Patricia Kennedy from Ayrshire in driving this issue forward. Emphasises the human cost of pension erosion for pre-1997 pensioners. Supports the principle that pensions earned before 1997 should not be left to wither away and calls on the Government to look at other legislative means if good co-operation does not come from trustees.
Susan Murray
LD
Mid Dunbartonshire
Welcomes the Liberal Democrat proposals to introduce a simple traffic light system and new clause 7 for pre-1997 pensioners. Discusses ethical investment, the need for clarity in guidance for pension funds not to assist breaches of international law, and the importance of fairness and transparency in pension schemes.
Questions Susan Murray on the conflict between Liberal Democrat stance against mandation and her support for ethical investment. Highlights the need for clear guidance for pension funds.
Clive Jones
LD
Wokingham
Highlights issues faced by pre-1997 pensioners in his constituency, including loss of purchasing power due to lack of annual indexation. Criticises the Pension Schemes Bill for failing to address these issues and calls for statutory protection for all pre-1997 pensioners.
Epsom and Ewell
Raises concerns about constituents impacted by a sudden decrease in inflation payments, supporting the need for a plan to address their situation.
Ayoub Khan
Ind
Birmingham Perry Barr
Supports ethical investment parameters and discusses issues within local government pension funds. Highlights misuse of public money by investment bankers managing these funds and calls for better management practices.
Liam Byrne
Lab
Birmingham Hodge Hill
Byrne highlighted the issue of overcharging by local pension boards, which leads to excessive contributions from public institutions. He cited a research study showing that Birmingham city council has paid £1.2 billion in employer contributions to the West Midlands Pension Fund in the past ten years and has since declared bankruptcy and approved significant budget cuts due to financial strain.
Torsten Bell
Con
Member for Cities of London and Westminster
Bell thanked hon. Members for their speeches on pensions issues and acknowledged some of the changes introduced by the Government. He provided details on the timeline for the Pensions Commission's final report, which is due in early 2027. Bell also addressed concerns about pre-1997 indexation and its impact on pension members.
Claire Hanna
SDLP
Belfast South and Mid Down
Hanna welcomed the changes introduced by the Budget, specifically the pre-1997 indexing. However, she noted that it does not fully correct the issue for tens of thousands of former employees from Harland & Wolff and Visteon. She proposed new clauses 28 and 29 to address this.
The hon. Member spoke powerfully to her new clause 3, highlighting the PPF's efforts to ensure quick payments for people with terminal illness and emphasised the need for certainty in such cases.
She also supported the PPF's efforts to ensure timely payments for individuals with terminal illness, citing the need for clear evidence in these cases.
This member highlighted the importance of advice and guidance for retirement planning and acknowledged the existing provision of free guidance through the Money and Pensions Service.
She agreed that reducing complexity in the pensions system is crucial rather than simply providing more advice, supporting measures such as guided retirement and small pots.
Moves a new clause and makes amendments to the Pensions Act 2008. The amendment ensures that certain compensation paid by the Pension Protection Fund in respect of pre-1997 service is increased annually. This includes provisions for GMP indexed service, adjusting indexation dates, and modifying definitions as required.
The new clause makes provision for certain compensation paid by the Pension Protection Fund in respect of a person’s pre-1997 pensionable service under legislation extending to Northern Ireland to be increased annually.
Steve Darling
Lab
Glasgow
Mr. Steve Darling introduced a new clause that would permit the Secretary of State to establish investment funds which pension schemes could use for targeted investments in social and economic benefit areas, such as high street revitalisation, affordable housing development, care homes, clean energy projects and social initiatives.
James Wild
Cons
Opposes the amendments proposed by Torsten Bell, particularly those aimed at setting mandatory asset allocation targets for certain pension schemes. Proposes an amendment requiring the Secretary of State to produce a report detailing barriers preventing UK pension funds from investing in the country and how financial interests would be affected.
Torsten Bell
Lab
Defends the amendments, emphasising their necessity for improving regulatory oversight over pension schemes and ensuring that trustees or managers comply with regulations. Proposes clarity in definitions and cross-references to ensure consistent application of new provisions.
Presented amendments and explanations related to clauses 100, 101, 102, and 105 regarding GB and NI pension schemes. Emphasised the need for clarity in legal proceedings and drafting consistency.
Helen Whately
Con
Faversham and Mid Kent
Welcomes parts of the Bill inherited from Conservatives, such as consolidation of fragmented pension pots, introduction of value for money framework and pensions dashboard. Acknowledges flaws in the bill that mandate how pension funds invest, which changes trustees' legal duty to members.
James Wild
Con
North West Norfolk
Expresses concerns about the relationship between scale and innovation, urging the Government to avoid blocking new entrants. He also highlights issues with pension adequacy, noting that millions of people are under-saving for retirement due to government actions such as cutting winter fuel payments and implementing salary sacrifice caps.
Kirsty Blackman
SNP
Aberdeen North
Concerns over the understanding of defined contribution schemes by individuals, advocating for better education on pension outcomes. Acknowledges the Minister's changes to the Bill and appreciates the commitment made regarding fiduciary duty. Emphasises the need for a legislative framework that keeps pace with current investment practices.
Government Response
Government Response
The Minister responded by stating that the change introduced would make a difference to others affected, even if it does not meet everyone's expectations. In response to Sean Woodcock’s question, he clarified that the prospective indexation of Pension Protection Fund and financial assistance scheme payments linked to pre-1997 pensions will be consumer prices index-linked, capped at 2.5%, applying only to members whose former schemes provided for such increases. Details government's stance on pre-1997 indexation, explaining consistency of position: compensation recognises schemes that previously provided indexation. Rejects retrospective changes to scheme rules. Emphasised the intention to provide more guidance to pension scheme trustees, highlighting changes in surplus rules that enhance trustees’ leverage. Noted commitment to taking primary legislative powers and consulting on statutory guidance. Acknowledged the importance of providing regulatory clarity but did not commit to legislative action beyond existing powers. Bell responded to several points raised during the debate, including timelines for the Pensions Commission's final report and details on pre-1997 indexation. He discussed amendments related to local government pension scheme governance, investment strategies, and responsible investment practices. The Minister provided updates on pensions dashboards, user testing, and financial education in primary schools. They also addressed comments about monitoring and evaluation plans for the policy programme set out in the Bill.
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