Lords vote to scrap mandation power from Pension Schemes Bill

Peers have today (19th March 2026) voted to remove the Government’s mandation power from the Pension Schemes Bill. 

The Bill, which is at the report stage in the House of Lords, saw an amendment passed that takes away any Government power to direct how defined contribution (DC) auto-enrolment pension schemes invest. 

This followed a similar defeat for the Government earlier in the week on powers over the Local Government Pension Scheme.

Matt Tickle, chief investment officer at Barnett Waddingham (BW), said: “We welcome the Lords vote to remove the investment mandation power from the Pension Schemes Bill. 

“Saver outcomes must always come first, and this decision rightly preserves trustees’ fiduciary duties, protecting millions of workers’ retirement savings from political interference. 

“We also support the decision that the proposed amendment to direct investment of LGPS assets is unnecessary, as it is important to remember that these assets should be invested primarily in the interest of the members of the Scheme.”

Tickle added: “The economic case for mandation was never convincing. 

“The Mansion House Accord shows that a voluntary approach can generate genuine industry commitment to UK and infrastructure investment without the need for government mandation.