During Questions to the Secretary of State for Work and Pensions in the House of Commons, Philip Dunne asked him if he recognises that schemes introduced by the Government have resulted in companies having to close their schemes to new entrants.

Mr. Philip Dunne (Ludlow) (Con): Does the Minister recognise that the schemes that the Government have introduced collectively mean that the best way for most companies to reduce their pension exposure is to close the scheme to new entrants? The second best way is to close the scheme altogether.

Mr. Timms: No, I do not agree. We are seeing pressures on defined benefit schemes in the UK, as elsewhere, arising mainly from rising life expectancy and volatility in the stock market, but also from increased transparency in accounting standards. The regulator has made it clear that there will not be a requirement to close deficits within 10 years, but there will be a case-by-case consideration of each scheme.

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