Pension Schemes UK Investment Incentives 2023-09-05
2023-09-05
TAGS
Response quality
Questions & Answers
Q1
Partial Answer
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Context
The question arises from the need to encourage pension schemes to invest more in UK industries, aiming to unlock capital for growth.
What steps his Department is taking to incentivise pension schemes to invest in the UK. The Government presented a series of pension reforms at Mansion House aimed at increasing returns and enabling investments in promising sectors.
My hon. Friend makes an important point. With the right precautions, it is right that we look at ways to incentivise employers to deliver higher returns for pension savers by unlocking surpluses in defined-benefit schemes more effectively.
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Assessment & feedback
The answer does not provide specific measures or timeline for relief from tax penalties on unlocking surpluses.
Response accuracy
Q2
Partial Answer
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Context
The question follows the initial query and focuses on a specific issue within pension schemes: unlocking surpluses in defined-benefit schemes to allow more efficient use of funds.
I thank the Minister for his answer and welcome those measures. Have the Government considered what more can be done to unlock surpluses in defined-benefit schemes to allow employers to use that money more effectively, rather than having it end up going into insurance companies on buy-outs? There is a huge tax penalty on unlocking surpluses. Is there a way of relieving that to encourage the money to be invested more efficiently?
My hon. Friend makes an important point. With the right precautions, it is right that we look at ways to incentivise employers to deliver higher returns for pension savers by unlocking surpluses in defined-benefit schemes more effectively.
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Assessment & feedback
The answer does not provide specific measures or timeline for relief from tax penalties on unlocking surpluses, only a commitment to look at it.
Response accuracy
Q3
Partial Answer
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Context
The question addresses the Government's actions concerning the mineworkers' pension scheme, where £4.4 billion has been taken by the government. A cross-party committee concluded that this practice should be reconsidered.
The Government have to date taken £4.4 billion from the mineworkers' pension scheme. The then cross-party Business, Energy and Industrial Strategy Committee concluded that the Government should not be “profiting from mineworkers' pensions.” How does the Secretary of State justify their continued profiteering?
I am not familiar with the issue that the hon. Lady speaks about. I would be very happy to meet her to understand it in more detail.
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Assessment & feedback
The answer avoids providing a justification or explanation for the government's actions and instead offers to discuss the matter further.
I Am Not Familiar With The Issue That The Hon. Lady Speaks About.
Response accuracy