Commons Sense

House of Commons · Ministers' Questions

Pension Schemes: UK Investment Incentives

Tuesday 5 September 2023 · 3 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 2 Not answered 0

Key points

  • Nigel Mills inquired about steps to incentivize pension schemes to invest in the UK.
  • Nigel Mills welcomed the measures and asked about further unlocking surpluses in defined-benefit schemes.
  • Stephanie Peacock questioned the Government's actions regarding taking 4.4 billion from the mineworkers' pension scheme.

Topics (select to filter)

Questions & Answers

Q1 Nigel Mills Con
Benefits & Welfare
Context

The question arises from the need to encourage pension schemes to invest more in UK industries, aiming to unlock capital for growth.

Question

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.

Answer from Andrew Griffith

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.

Partly answered

Not addressed: The answer does not provide specific measures or timeline for relief from tax penalties on unlocking surpluses.

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Q2 Nigel Mills Con
Taxation
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.

Question

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?

Answer from Andrew Griffith

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.

Partly answered

Not addressed: The answer does not provide specific measures or timeline for relief from tax penalties on unlocking surpluses, only a commitment to look at it.

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Q3 Stephanie Peacock Lab Barnsley South
Benefits & Welfare
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.

Question

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?

Answer from Andrew Griffith

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.

Not addressed: The answer avoids providing a justification or explanation for the government's actions and instead offers to discuss the matter further.

How: I Am Not Familiar With The Issue That The Hon. Lady Speaks About.

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