New clause 1 - Application of Act
Pension Annuities (Amendment) Bill
9:30 am
Ms Ruth Kelly (Economic Secretary, HM Treasury; Bolton West, Labour)
I understand the motivation behind the hon. Gentleman's new clause and I do not think that it would add significantly to the costs of the Bill. It would, however, add a new layer of complexity and red tape to the system of taxation and pensions, which the Government are incredibly keen to simplify. We recognise that pension tax rules, which are now difficult to understand or operate, have increased over the years.
A number of different tax-approved pension vehicles recognise the different employment circumstances from which pensions can arise. They give employers and employees flexibility and choices on pension provision. As changes have occurred, some schemes have been closed to new members, but as long as existing members continue to draw benefits from them, the tax system needs to continue to recognise and lay out rules for each one. That protects members' entitlements, as well as maintaining the integrity of the tax system. As the hon. Gentleman will be aware, that has given rise to great complexity in the existing system. I have already spoken about the different exercises with which the Government are involved to reduce that level of complexity to make the system as transparent and simple as possible.
I therefore believe that the hon. Gentleman's amendment would move us in the opposite direction by introducing a new tier of regulation and complexity. For those reasons, I resist his amendment.
Question put and negatived.
The Chairman: I will now put the question that the Committee do report the Bill, as amended, to the House.
Mr. Curry: I want to thank you for the way in which you have chaired the Committee, Mr. Stevenson. It has turned out to be shorter than we feared. I also thank the Minister for the good humour that she has brought to the discussion, which is enormously important and is going to get much bigger. I hope that the Bill will be a little pebble in the Government's shoe that makes them realise that something must be done.
The Chairman: Order. That is kind. There are pebbles in shoes and there are grits in oysters. I thank members of the Committee and everyone who has supported it; it has been a pleasure.
Question put, That the Chairman do report the Bill, as amended, to the House:—
The Committee divided: Ayes 5, Noes 2.