Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, with reference to the recommendations of the Third Report of Session 2023–24 of the Work and Pensions Committee, Defined benefit pension schemes, published on 26 March 2024, HC 144, whether she plans to bring forward legislative proposals to amend schedule 7 of the Pensions Act 2004 to enable members of the Pension Protection Fund to receive indexation in respect of pensionable service prior to 5 April 1997.

We are committed to considering and reflecting on what we have heard regarding the issue of Pension Protection Fund and Financial Assistance Scheme rules on the indexation of pre-1997 pension accruals. We understand it is an important issue for those affected.

The Pension Protection Fund’s assets and liabilities sit on the Government’s balance sheet, and any changes will have an impact on public finances. Any changes to the Financial Assistance Scheme will also impact the Exchequer and so requires careful consideration. The Government therefore needs to take its time to reflect on these complex matters which require a balanced approach for thoses receiving compensation, levy payers and taxpayers.

We will continue to work closely with the Pension Protection Fund as we explore this important issue further.