Nuclear Decommissioning Industry: Pensions

Debate between Liz Saville Roberts and Patricia Gibson

Tuesday 21st March 2017 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I beg to move,

That this House has considered pensions in the nuclear decommissioning industry.

I have been seeking to secure a debate on pensions in the nuclear decommissioning industry for some months, as I am deeply disturbed by the way workers have been treated and betrayed by the UK Government. I speak on behalf of those in my constituency of North Ayrshire and Arran who work on the Hunterston A site, but this matter is of material interest to all workers across the United Kingdom who share the sense of betrayal and treachery at the fact that their pensions have been treated as if they were of no account.

[Mr Philip Hollobone in the Chair]

The betrayal that those workers feel should come as no surprise to anyone who has followed events since the nuclear estate was privatised by the Thatcher Government in the 1980s. Guarantees were made requiring the new private sector employers to continue to provide pension benefits for those employed at the time of privatisation

“at least as good as those they were receiving in the public sector”.

Those guarantees and legal protections have now been abandoned.

That situation was made starkly clear by the Nuclear Decommissioning Authority and other employers consulting on reforms to two final salary schemes, seeking the views of members on changes such as moving to a career average, revalued earnings arrangement and a cap on pensionable pay. The UK Government decided that because the Nuclear Decommissioning Authority is classified as public sector, those schemes should be reformed under the Public Service Pensions Act 2013. Clearly, however, those pensions are not public sector ones, as I shall go on to make clear.

The erosion of decommissioning workers’ pensions is unacceptable. Radical reform of those pensions has already taken place in the mid-2000s, when they were closed to new entrants, who now have inferior defined-contribution pensions. Public sector reform takes no account of the fact that decommissioning sites are now in the private sector, nor that, unlike for other public sector workers, redundancy is an inherent part of decommissioning workers’ employment.

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

I congratulate the hon. Lady on securing the debate. Pension rights in the event of redundancy are particularly important for workers undertaking decommissioning at Trawsfynydd power station in my constituency because of the timescale for closure and the age profile of the workforce. I hope she agrees that we need a commitment from the Minister in her response that a solution will be found for employees of Magnox Ltd and other companies affected by the Enterprise Act 2016.