Thank you, Madam Deputy Speaker. That was beautifully pronounced, which is what I would expect from a Member from Kilmacolm. I look forward to your pronunciation of my constituency.
My hon. Friend made a very good point. I think she, and indeed everyone who listened to the Minister’s response to new clause 11, will be wondering what he proposes in lieu of the new clause. “Nothing” is an honest and fair assessment—or, at least, “Nothing concrete or substantive.” Referring to decumulation, the Minister said, “An awful lot needs to be looked at. We need to go further, but we need a creative approach rather than merely focusing on annuities.” I understand what he meant, because there is an ongoing debate about annuities as a product, but people out there, including our constituents, are annuitising every day. I do not think that saying to those people, “We are going to think about some creative solutions, we cannot tell you what they are, and because we are going to do something creative, we should not at this stage do something specific and concrete in order to improve outcomes,” stands the test. How long will it be before the Minister deals with this problem?
We know that annuities are a huge issue and that plenty of ideas are flying around, but ours is a concrete, practical proposal to improve annuity outcomes as things stand. I do not deny that the Minister has done something pretty significant in respect of state pensions, and I know that he must maintain a balance between pension schemes, but is it really good enough for him to respond to us by saying, “We need to do something—we need to go further—but we need a creative approach rather than your approach, which is focused on annuities”?
Annuities are the product that most people have to buy, and I think it unfair of the Minister to reject our new clause on the grounds that he prefers a more creative approach without explaining what that creative approach will be. I know that he has a great deal on his plate with state pension reform—winding up the state second pension as quickly as he intends to wind it up constitutes an incredibly big reform—but I ask him to reflect on whether it is good enough to say to people who have saved throughout their lives, and who are now receiving much less than they could have received had they shopped around, “We cannot support the Opposition’s new clause because although an awful lot needs to be done and we need to go further, we need a more creative approach.” I do not believe that anyone will be convinced by that.
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The fact that people do not shop around for annuities is not the industry’s problem. Where there are shareholders, the industry exists to deliver shareholder value. If individuals choose to remain with their existing provider, the industry can encourage them to shop around—as it is currently doing by means of the open market option—but at some stage the industry will rightly say, “We have made efforts, but people are still not shopping around.” The Government must take action to ensure that people are given independent advice that will enable them to secure the best possible deal. That is in all our interests, because the more retirement income our constituents have, the more decent, enjoyable and, hopefully, long retirement they will experience.
New clause 11 eliminates the gap between the Minister’s rhetoric about the tough action that he will take to deal with problems in the pension market and the reality. At present, he is saying, “We will not do what you suggest,
but I have nothing to propose myself.” This is, after all, the Pensions Bill. If reform is not proposed in the Pensions Bill, where will it be proposed?