Financial Assistance Scheme (Increased Cap for Long Service) Regulations 2018

Baroness Altmann Excerpts

Monday 22nd January 2018 Lords Chamber

[Lord Jones (Lab)]

My Lords, like my noble friend at the Dispatch Box, the Minister is a master of detail and I thank her for her helpful introduction. However, since they refer to Wales as well as the rest of Britain, have these draft regulations any relevance to the steel-workers of Port Talbot at the previous Tata company? Indeed, do they in any way impinge upon the pensions entitlement of the remnant of the steel industry across Britain? It is not that one expects steel pensions to be sky-high, which the cap might anticipate. If the Minister can in any way make reference to the beleaguered steel industry, and in particular those steel-workers in the great Port Talbot works who are very anxious about their pensions, that would be helpful.

[Baroness Altmann (Con)]

My Lords, I congratulate the Government on introducing these very important regulations. I spent years of my life helping the victims of failed pension schemes under the previous system, which had no insurance protection for lost pensions, despite the workers in those schemes having part of their state pension and their entire private pension savings included in their pension scheme as they were not allowed to have any other pension savings. Having been assured by the Government that their pensions were safe and protected by law, they found that it turned out that they could lose their entire pension. Indeed, many of them did, including steel-workers in south Wales at the time.

It is 10 years since the Financial Assistance Scheme was extended to mirror the Pension Protection Fund. It took a parliamentary ombudsman inquiry, a Public Administration Select Committee inquiry and then a case in the High Court, followed by a case in the Court of Appeal—where the victims were forced to take the then Government to court—to ensure that the Financial Assistance Scheme, which at the time was designed to help only a few of those who had lost their pensions and to replace only a small portion of the pensions they had lost, was extended to mirror the PPF. As the noble Lord, Lord McKenzie, rightly said, it is only right that the continued mirroring of the scheme should be followed, and having extended the Pension Protection Fund cap, it is essential that the Financial Assistance Scheme cap must also be increased. I congratulate the Government on doing so.