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An amendment to the Public Service Pension Bill preventing public service pension funds from being misused to target Israel through divestments has passed the House of Lords this week with the support of Conservative Peers. The amendment, initially tabled by former Communities and Local Government Secretary, Rt. Hon. Robert Jenrick MP, represents a major step forward in the Government’s stated intention to tackle the so-called Boycott, Divestment and Sanctions (BDS) movement.
Mr Jenrick tweeted his thanks to “all Peers who supported my amendment”, which will “end divisive BDS against Israel in public sector pensions”. This was the final stage of passing the amendment, as two weeks ago it was passed the House of Commons this week with the support of the Government, and will therefore now become law.
The bill will specifically lay out in law the Secretary of State’s power to offer the guidance to administrators of local government pension schemes that investment decisions should not conflict with UK foreign and defence policy. The amendment comes in response to multiple attempts at local councils in the UK to divest holdings from Israeli companies and those operating in Israeli settlements in the West Bank.
CFI Officer Baroness Altmann CBE stressed that the BDS (Boycott, Divestment & Sanctions) movement has “no place in pension decisions”, as not only is it “in opposition to government policy” but also “encapsulates antisemitism”.
Lord Leigh of Hurley stated that many individuals involved in the BDS campaign are “driven by opposition to Israel’s very existence as a Jewish state”. He also explained how the BDS movement contradicts coexistence and peace negotiations between Israel and Palestine.
CFI Honorary President Lord Polak CBE highlighted the UK’s “very strong connection with Israel” with the UK being Israel’s third largest trading partner, including an overall £4.8 billion trading relationship. He also hailed the “improved and growing” relationship between Israel and the Arab world, explaining that this is a visible sign that “the BDS campaign is a relic of a past war which is no longer being fought in the region”.
The purpose of the amendment is to resolve an issue that arose out of the Public Service Pensions Act (2013) and the Local Government Pension Scheme (Management and Investment of Funds) Regulations 2016, after the Government lost a legal challenge at the Supreme Court by the Palestine Solidarity Campaign in 2020.
