Pension Scheme Wind-ups — 24 Feb 2004 at 18:48

I beg to move,

That this House condemns the Government's inaction in the face of the crisis in occupational pensions; regrets that the Pensions Bill will do nothing to encourage people to save for their retirement or companies to keep open existing defined benefit schemes, let alone start new ones; recognises with regret that the Pensions Bill will do nothing to help the estimated 60,000 members of schemes who have lost all or most of their pension entitlement; notes that the Government has twice reduced the minimum funding requirement as well as removing £35 billion in extra taxes from pension funds and has conspicuously failed to amend the priority order on wind-up, despite offers of co-operation from the Official Opposition; expresses its surprise that the Government has refused calls to instigate an independent inquiry into the extent of the problem; and calls upon the Government to take urgent action to tackle the current crisis in pensions and to mitigate the unfairness caused to thousands of current and future pensioners across the United Kingdom.

I beg to move, To leave out from "House" to the end of the Question, and to add instead thereof:

"supports the Government's strategy to tackle pensioner poverty, and to deliver simplicity, security and choice in working and saving for retirement; condemns the pensions inheritance of 1997, with millions in poverty and the legacy of pension mis-selling; notes that the Government is spending £9 billion extra per year in real terms on pensioners compared with the 1997 system; condemns the unfair, unaffordable and unsustainable pensions policies of Opposition parties; expresses its sincere sympathy for those who have lost part or all of their pension as a result of their employer becoming insolvent; believes the Government should continue to look at all available options to help people affected, but that it would be cruel to raise expectations if no workable solution can be found; welcomes the publication of the Government's Pensions Bill; further believes that the Pension Protection Fund will bring real security for over 10 million defined benefit pension scheme members if their employer becomes insolvent and pensions schemes wind up in the future; further believes that firms should honour pension promises they have made; welcomes the Bill as a balanced package, with a new regulator and measures to simplify pensions legislation, making it easier for employers to run good schemes; further believes that pension reform should be a common cause; and calls on all Members of this House to support the Government's Pensions Bill.".

Question put accordingly, That the original words stand part of the Question:-

The House divided: Ayes 193, Noes 319.

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