The draft Pensions Bill
We published the draft Pensions Bill on 18 January 2013 and submitted it to the Work and Pensions Select Committee for pre-legislative scrutiny.
The draft Bill provides for:
- reforms to the State Pension system (the single-tier pension);
- bringing forward the increase in the State Pension age to 67;
- introducing a framework for future changes to the State Pension age;
- reforms to bereavement benefits; and
- amendments to private pensions legislation.
The draft Pensions Bill document includes both the draft legislation and the accompanying Explanatory Notes which provide an outline of the effect of each clause.
- Draft Pensions Bill (1.6MB)
- RTF version – Draft Pensions Bill (1MB) RTF
Related documents
On Monday 18 March, the Government announced that, subject to Parliamentary approval of the Pensions Bill, the single-tier pension will be introduced in April 2016. The documents below reflect the position at the time they were published (which was that the single-tier pension would be introduced in April 2017 at the earliest). They will be updated when the Bill is introduced to Parliament.
Summary of impacts
This provides an overview of the measures in the Bill and summarises their impacts. The Impact Assessments for the relevant individual measures are attached as annexes.
- Draft Pensions Bill Summary of Impacts (132KB)
- Draft Pensions Bill – Impacts – Annex A: The single-tier pension: a simple foundation for saving (415KB)
- Draft Pensions Bill – Impacts – Annex B: Long term State Pension sustainability: increasing the State Pension age to 67 (133KB)
- Draft Pensions Bill – Impacts – Annex C: Bereavement Benefit for the 21st century (91KB)
- Draft Pensions Bill – Impacts – Annex D: Reducing the frequency that the Pensions Regulator must require Scheme Return completion from two to four member defined contribution pension schemes (564KB)
- Draft Pensions Bill – Impacts – Annex E: Other measures in the draft Pensions Bill (48KB)
Delegated Powers Memorandum
This identifies the provisions for delegated legislation in the draft Bill and explains the purpose of the powers, why they are left to delegated legislation and the parliamentary procedure selected for the exercise of these powers.
Main provisions
State Pension (The single-tier pension)
The draft Bill contains provisions to implement the single-tier state pension as set out in ‘The single-tier pension: a simple foundation for saving.’ The single-tier pension will, for future pensioners, replace the current basic State Pension and additional State Pension with a flat-rate pension that is set above the basic level of means-tested support.
Bringing forward the increase in the State Pension age to 67
This change will mean that State Pension age will gradually rise from 66 to 67 between 2026 and 2028.
A framework for future increases to State Pension age
The framework provides for a regular review of the State Pension age, based around the principle that changes be made to maintain a proportion of adult life in receipt of State Pension.
Bereavement Benefits
The draft Bill contains provisions to introduce Bereavement Support Payment to replace the existing bereavement benefits for new customers. The reforms will significantly simplify the system by moving to a more uniform payment structure with support focused on the period immediately following bereavement and a single contribution condition. These proposals were set out in the Government’s response to Bereavement Benefit for the 21st Century
Private pensions
The draft Bill contains a number of provisions relating to private pensions, most of which amend existing legislation.
Pre-legislative scrutiny
The draft Pensions Bill has been submitted to the Work and Pensions Select Committee for pre-legislative scrutiny. We expect them to focus on Part 1 of the draft legislations – the single-tier state pension clauses.
Information about the Committee’s plan and timetable for pre-legislative scrutiny, including their call for written evidence, can be found on their website www.parliament.uk/workpencom.
Comments on the draft Pensions Bill
We encourage interested parties to share any comments on the draft legislation with the Work and Pensions Select Committee so they can be considered as part of the pre-legislative scrutiny process.
The Department is not running a formal consultation on the draft Bill but should you have any queries or comments on the draft legislation you may send these directly to the Department at the address below.
Pensions Bill team
Department for Work and Pensions
1st Floor
Caxton House
Tothill Street
London. SW1H 9NA
Email: pensions.bill@dwp.gsi.gov.uk
When contacting the Department please state whether you are writing as an individual or on behalf of an organisation. If on behalf of an organisation, please make clear who the organisation represents, and how the views of members were obtained.
Any comments on the draft legislation received by 22 March 2013 will be considered by the team working on the draft Bill and used to assist the Government in considering whether the legislation can be improved before it is introduced to Parliament.
Introduction of the Bill to Parliament
Following pre-legislative scrutiny the Government will consider the report from the Select Committee and whether any amendments are required to the draft Bill. In addition, further measures may be added to the Bill.
We will introduce the Bill as soon as is practicable after the completion of pre-legislative scrutiny (which we expect to be completed by the end of the current Parliamentary session in April).
