Clause 36
Pensions Bill
4:30 pm
James Plaskitt (Parliamentary Under-Secretary, Department for Work and Pensions; Warwick and Leamington, Labour)
I am grateful to those who have contributed to the debate. It might be helpful if I clarify a few points first.
The Pensions Regulator is funded by a levy on pension schemes. That levy is used to pay for a range of activities. We do not believe that the funds raised by the levy should be used to cover the costs to the Pensions Regulator of designing and putting in place its compliance procedures in the run-up to 2012. That work is essential if the regulator is to discharge its compliance responsibilities in the future. It is for a broader public benefit and, therefore, should be funded accordingly. We propose to do that through grants in aid using powers under schedule 5 of the Pensions Act 2004. Interestingly, that means that the work would be funded from the Consolidated Fund, into which we have just agreed to put money under the previous clause. Expenditure and funding given to the regulator to develop its compliance regime will be accounted for separately from its current activity and funding regime.
There were queries at one point about the issue of funding, so I want to respond. On the question of “may” versus “must”, the “may” in subsection (1) refers to making regulations. There is also a right to appeal in subsection (1). I hope that that covers the point and that the hon. Member for South-West Bedfordshire will withdraw the amendment.