Pension Schemes Bill: HoL Grand Committee Day 4: government holds the line as VfM, small pots, scheme scale and asset allocation provisions pass unamended
Pensions analysis: On the fourth day of Grand Committee on the Pension Schemes Bill on 22 January 2026, the House of Lords (HoL) undertook an extensive examination of the value for money (VfM) regime, small pots consolidation, scheme scale requirements and the reserve power to mandate asset allocation. Day 4 confirmed the government’s clear legislative strategy: broad enabling powers in primary legislation, with legal substance deferred to regulations, consultations and guidance. Despite extensive probing from peers on fiduciary duty, proportionality, market impact and member protection, no changes were made to the Bill. All Clauses examined were agreed, leaving the key legal risks and safeguards to be resolved at the time secondary legislation is debated in Parliament.