Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment they have made of the consistency of current policy to count the Pension Protection Fund (PPF) reserves towards the Public Sector Net Fiscal Liability with the statutory purposes of the Pensions Act 2004; and whether they have sought legal advice on whether treating PPF assets as part of the public sector balance sheet for fiscal rule purposes is compatible with the statutory framework.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Office for National Statistics (ONE) is the independent body responsible for economic classification decisions in the UK. Following international statistical guidance, the ONS has classified the PPF as a public pension fund, while the levies to fund the PPF are classified as taxes.
The way the PPF Board’s assets and liabilities are treated within the public finances does not affect the legal separation of the property of the Crown and Board as set out in the Pensions Act 2004.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what representations they have made, if any, to the Office for National Statistics about the classification of Pension Protection Fund assets.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Office for National Statistics (ONE) is the independent body responsible for economic classification decisions in the UK. Following international statistical guidance, the ONS has classified the PPF as a public pension fund, while the levies to fund the PPF are classified as taxes.
The way the PPF Board’s assets and liabilities are treated within the public finances does not affect the legal separation of the property of the Crown and Board as set out in the Pensions Act 2004.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what communication they have had with the Pension Protection Fund and its board about the levels of surplus or excess reserves and use of these excess assets for enhancing member compensation payments.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Pension Protection Fund (PPF) is a statutory public corporation, and the Department for Work and Pensions works closely with PPF and its Board across a broad range of topics, including member compensation levels and PPF reserves.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assurances and risk warnings were provided to members of the Atomic Energy Authority public sector pension scheme in 1996, before they transferred their accrued public sector pension benefits into the Atomic Energy Authority Technology private sector scheme.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Department for Work and Pensions does not hold information on how much funding was transferred to the Atomic Energy Authority Technology private sector pension scheme in 1996 and does not hold all the communications that were provided to members of the Atomic Energy Authority Technology pension scheme in 1996.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how much money was transferred to the Atomic Energy Authority Technology pension scheme in 1996, when staff were transferred from their Atomic Energy Authority public sector pension scheme into the Atomic Energy Authority Technology scheme.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Department for Work and Pensions does not hold information on how much funding was transferred to the Atomic Energy Authority Technology private sector pension scheme in 1996 and does not hold all the communications that were provided to members of the Atomic Energy Authority Technology pension scheme in 1996.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government whether a company that has entered the Pension Protection Fund can be extracted from the Pension Protection Fund, on payment of sufficient funds to cover the future Pension Protection Fund liabilities, if a new sponsoring employer is willing to underwrite the scheme and pay benefits above Pension Protection Fund level.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
The Pension Protection Fund (PPF) does not permit transfers out because the PPF does not work as a segregated fund, where individual schemes contributions are ringfenced.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what estimate they have made of the cost of compensation for the loss of inflation protection for benefits accrued before 1997 for past members of the AEA Technology pension scheme who were transferred out of the public sector scheme in 1996.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
We recognise the challenges members of the AEA Technology pension scheme face and are directly tackling the point you raise about the loss of inflation protection. The Chancellor announced at the Budget that this Government will introduce annual increases on compensation payments from the Pension Protection Fund and Financial Assistance Scheme that relate to pensions built up before 6 April 1997. These will be Consumer Prices Index-linked (capped at 2.5%) and apply prospectively (i.e. to payments going forward) for members whose former schemes provided for these increases.
I am pleased to confirm that past members of the AEA Technology pension scheme with pre-97 accrual will benefit from this measure.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government how many pension schemes have entered the Financial Assistance Scheme; and for what proportion of (1) schemes, and (2) scheme members, does the Pension Protection Fund have definitive copies of the original scheme's trust deed and rules in relation to pre-1997 pension increases.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
As of 16 December 2025, 1,045 schemes have transferred into the Financial Assistance Scheme.
The Pension Protection Fund (PPF) holds a significant amount of scheme information. We are confident that the PPF will be able to identify the information needed and successfully implement the reforms to award pre-97 indexation uplifts to compensation payments.
The PPF is reviewing the information it holds for each scheme. Alongside scheme rules, the PPF will use additional data sources, including scheme return data, member booklets, data provided on transfer, valuation reports, annuity reports, and bulk buyout schedules.
Where the position is unclear, the clauses within the Pension Schemes Bill provide that the presumption is in favour of the members. In such cases, the PPF will award pre-97 indexation.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what assessment it has made of the level of investments by open UK defined benefit schemes, including the Parliamentary Pension Scheme, into UK equities.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
Private sector defined benefit (DB) pension schemes which are open to new members allocate 42% of their assets to equities. However, this is not broken down by UK equities. See the PPF Purple Book for further detail: https://www.ppf.co.uk/-/media/PPF-Website/Public/Purple-Book-Data-2025/Pension-Protection-Fund-Purple-Book-2025-accessible.pdf
Public sector DB pension schemes are estimated to allocate around 9% of their assets to listed UK equities. See the Pension Policy Institute’s 2025 “Pension scheme assets” report: https://www.pensionspolicyinstitute.org.uk/media/i2cgonin/20250604-pension-scheme-assets-2025-final.pdf
The scheme trustees are responsible for the investment strategy of the Parliamentary Contributory Pension Fund and information on asset allocation is published in the scheme’s Annual Report and Accounts. These are published on the website of the Independent Parliamentary Standards Authority www.theipsa.org.uk/annual-reports.
Asked by: Baroness Altmann (Non-affiliated - Life peer)
Question to the Department for Work and Pensions:
To ask His Majesty's Government what is the average processing time for Attendance Allowance.
Answered by Baroness Sherlock - Minister of State (Department for Work and Pensions)
For the 2024/25 financial year to date (1 April 2024 to 31 January 2025) the average processing time for Attendance Allowance is 19 working days (with Monday to Friday being defined as working days). There is a quick application process for people who have been diagnosed with a terminal illness and aren't expected to live more than 12 months. These claims are fast tracked.
Attendance Allowance is currently undergoing a significant modernisation reform through the piloting of an on-line digital claim process as a part of the department’s wider Service Modernisation plans.
Please note, the Average Actual Clearance Time figures shown is unpublished management information, collected and intended for internal departmental use and has not been quality assured to National Statistics or Official Statistics publication standard. It is rounded to the nearest working day.