Question to the Department for Digital, Culture, Media & Sport:

To ask the Secretary of State for Digital, Culture, Media and Sport, when her Department plans to issue guidance to clarify the extent to which the Crown guarantee covers (a) existing pension payments of BT employees and (b) future pension payments of BT employees.

The Crown guarantee, given when BT was privatised, covers liabilities of BT plc to the BT Pension Scheme in the unlikely event of BT entering insolvent winding up.

We are committed to maintaining the Crown guarantee’s existing pension protection for the future accruals of pension benefits of BT Pension Scheme including those members who transfer to the new Openreach company as a result of BT's voluntary agreement with Ofcom. The Digital Economy Act 2017 includes a provision to ensure this protection will extend to the pensions of members transferring to the new Openreach company. We are now in the process of drafting a Statutory Instrument to implement the necessary changes to legislation. The Statutory Instrument will be laid before this House.

The current protection afforded to members who continue to be employed by BT plc; pensioners; their eligible dependents; and members of the Pension Scheme with deferred rights, will not be affected by the new legislation.