Clause 53

Part of Pensions Bill – in a Public Bill Committee at 2:30 pm on 31st January 2008.

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Photo of Nigel Waterson Nigel Waterson Shadow Minister, Work & Pensions 2:30 pm, 31st January 2008

The Minister makes a good point, in which case we will have to recast the amendment. If the Minister accepts the principle that we should write 3 per cent. into clause 53 we would be very happy with that.

It just seems to me that if there is a clause headed “Contribution Limits”, then it is worth spelling out what is envisaged on contributions. We know the position at the moment is that we start off with an 8 per cent. overall level of contributions: 5 per cent. from an employee, 3 per cent. from employers. Again, this point was quite hard fought the other day on the basis that, if some future Government or personal accounts board wanted to come back and argue for a higher statutory employer contribution, they would have to do that by way of primary legislation. I think that remains the Government’s position, and I am sure our position as well—and that is the kind of reassurance that employers are looking for.

If the principle is acceptable to the Minister—I was not going to press this amendment to a vote anyway—I am sure he can find a way of setting out even more issues about contribution levels, including the 8 per cent. overall figure, into clause 53, which just seems a logical place to put it, despite the fact it appears earlier in the Bill.