Clause 31

Part of Pensions Bill – in a Public Bill Committee at 4:15 pm on 29 January 2008.

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Photo of Mike O'Brien Mike O'Brien Minister of State (Pension Reform), Department for Work and Pensions 4:15, 29 January 2008

I have a lot of sympathy with the views expressed by the Liberal Democrats on this issue. Employees should not be disadvantaged by their employer’s failure to comply by not paying contributions on time. The compliance regime is designed to place employees in the position that they would have been in had their employer complied. Subsection (2)(c) proposes that after a set time period employers should be required to pay both their and their employees’ contributions. The hon. Member for Rochdale is right that various stakeholders, including Help the Aged and the TUC, have expressed an interest in this issue. Before we identify a period—three months is the one for which I have some sympathy—I want to discuss with the stakeholders, including business organisations, what the best period would be. I think the way forward on this is to allow us to consult properly before taking a final view, including about the appropriate length of time in question. We therefore propose that details should be consulted on and set out in secondary legislation when this issue has been further considered. In principle, I am with the hon. Gentleman. Although I will not commit the Government to it, I am even with him in thinking that three months sounds like a reasonable period. However, I want to hear all the arguments before I make a final decision, and I want the business community, as well as other stakeholders, to have a say. On that basis, I hope he will feel able to withdraw the amendment.