Pension Funds

Al Pinkerton Excerpts

Wednesday 23rd April 2025 Commons Chamber

[Manuela Perteghella]

I thank the hon. Member for raising that important issue. Absolutely, we need to ensure that the Government have a long-term outlook, so that the young working British people of today will be able to retire on a comfortable pension.

We urgently need a full review of pension clawback practices. Many constituents have written to me about other unfair pension schemes, including former police officers and people on occupational pensions that are not protected from inflation.

[Dr Al Pinkerton (Surrey Heath) (LD)]

I congratulate my hon. Friend on securing the debate. Terry, one of my constituents, worked for a large American multinational company. As a consequence of the Pensions Act 1995, he found his pre-1997 pension contributions decoupled from inflation. Because of the nature of inflation, his savings, which he now depends on, have been gradually eaten away and he finds himself in increasing levels of destitution. Will the Minister look at the issue with the seriousness that it requires? It cannot be right that pensioners in our country are suffering as a consequence of decisions made by multinational companies that remain hugely profitable. The issue has a particular geography because so many multinational companies were located in the south-east of England.

[Manuela Perteghella]

I thank my hon. Friend for making that important point. We need legal reform to ensure that pensions in payment are finally brought under the protection of equality law. We also need greater transparency and accountability from pension providers, especially those entrusted with the retirement futures of hard-working people. HSBC’s clawback policy is discriminatory in its impact, misleading in its language and fundamentally unjust in its effect. I therefore urge the Minister to bring forward legislation to put an end to this outdated practice and to finally stand up for those whose voices have gone unheard for far too long. Clawback is just one part of a broken pension system; we must also ask where our pension funds are invested and what future we are buying with that money.