Pensions Schemes Bill makes progress at Lords Grand Committee Stage despite strong reservations on LGPS reforms
The House of Lords Grand Committee (Grand Committee) opened its detailed scrutiny of the Pension Schemes Bill on 12 January 2026. Day 1 of the Grand Committee’s examination began on Chapter 1 of the Bill on the Local Government Pension Scheme (LGPS) and in particular Clauses 1 (Asset pool companies) and 2 (Asset management). Ultimately, all amendments debated on 12 January were withdrawn, and Clauses 1 and 2 were agreed without change. However, the debate raised significant cross-party concern about the breadth of ministerial powers, the heavy reliance on delegated legislation, the protection of fiduciary duty and the extent of ministerial influence over pension investment. On 14 January 2026, the Grand Committee continued its focus on the provisions of Chapter 1 of the Pension Schemes Bill when it agreed Clauses 6 (Mergers of funds), 7 (Amendments of 2013 Act relating to scheme regulations) and 8 (Interpretation of Chapter 1). Again, agreement was reached despite extensive debate highlighting concerns over compulsory mergers, funding positions, contribution prudence and employer affordability, surplus management, transparency, and the impact of local government reorganisation. The government peers maintained that existing statutory, actuarial and governance frameworks are sufficient and that further changes should be considered through consultation rather than primary legislation. The Grand Committee is currently scheduled to sit again on 19, 22 and 26 January 2026 when further detailed examination of the Pension Schemes Bill will continue.