Clause 35 - Qualifying schemes: administration charges

Part of Pensions Bill – in a Public Bill Committee at 12:30 pm on 11 July 2013.

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Photo of Sheila Gilmore Sheila Gilmore Labour, Edinburgh East 12:30, 11 July 2013

The amendment does not apply a cap. When we look at the different charges, there is concern—and history will tell us—that at times, when one avenue of charging is closed down or limited, other avenues open up. I do not have time to rehearse all of that today, but the evidence paper that went with our report is there to see. We had a lot of written evidence, as well.

Many people pointed out that charges are not just the obvious ones—the administration charges that people often see on statements. A lot of other charges come into play as the pension fund is invested or looked after in other ways. It is important for the consumer to know exactly what is happening. There were concerns that, even if the basic charge was pushed down to a low level, there would be other charges that people are not fully aware of and do not entirely understand.