Pensions Minister, Torsten Bell, has doubled down on his defence of the government’s proposed reserve power in the Pension Schemes Bill, insisting that the industry should “chillax”.

Speaking at the Pensions UK annual conference, Bell was asked why the government was “insisting” on a power that could, in theory, force trustees to act against what they believe to be members’ best interests.

In response, Bell maintained that the power was intended only to ensure the industry meets the commitments it has made, such as the Mansion House Accord, not to interfere with trustees’ fiduciary duties.

“I’m just encouraging the industry to do what it said it’s going to do,” he said, stressing that he "hadn't put in place a thing that’s comply or explain.”

“We’re trying to controversialise something when we all know we need to do this," he said, suggesting that the industry should "chillax".

Bell acknowledged that there were barriers to progress, such as scheme scale, but said work was already underway to address this through a continued push for consolidation.

“In private, the industry says there has historically been a collective action problem that’s made this difficult in practice - being undercut by competition focused on cost, not on value,” he noted, adding that “it’s value that matters to members.”

The Minister also highlighted that the proposed power did not represent a radical departure from previous policy approaches.

“The reserve power, actually - even if it was used, and it won’t need to be used, in my view - is just saying the same thing: comply with what the industry has already agreed to do,” he said.

“It’s there to resolve the collective action problem if it’s needed,” argued Bell.

When further questioned on whether he was concerned that the reserve power could be misused by future governments, such as for political interference, the Minister said the government was “aware of this issue, which is why the power doesn’t allow governments to start prescribing where they want investments to happen.”

He added that the inclusion of a sunset clause was designed to limit the duration of the powers.

“This is not a permanent state of affairs - it’s about whether we deliver the Mansion House agreement over the next few years,” Bell explained.

“The industry is committed to doing that, which is why I’m confident we won’t need to use it.”

In addition, Bell pointed out that trustees would retain their fiduciary duty regardless.

“If a government tried to misuse the power, trustees can simply say, ‘this isn’t in my members’ interests’, and they can’t be forced to act,” he said.

Looking ahead, the Minister urged the industry not to let the debate around mandation distract from the broader goal of unlocking investment opportunities in the UK.

“I know everyone’s really excited about the reserve power, but once you look at the details, you’ll probably get less excited,” he said.

Instead, Bell suggested that the focus should shift toward building investment capacity within pension schemes and reconsidering asset allocations to deliver better long-term outcomes.

“Those are the more interesting conversations,” he concluded.

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