Question to the Department for Work and Pensions:

To ask His Majesty's Government what estimate they have made of the cost of compensation for the loss of inflation protection for benefits accrued before 1997 for past members of the AEA Technology pension scheme who were transferred out of the public sector scheme in 1996.

We recognise the challenges members of the AEA Technology pension scheme face and are directly tackling the point you raise about the loss of inflation protection. The Chancellor announced at the Budget that this Government will introduce annual increases on compensation payments from the Pension Protection Fund and Financial Assistance Scheme that relate to pensions built up before 6 April 1997. These will be Consumer Prices Index-linked (capped at 2.5%) and apply prospectively (i.e. to payments going forward) for members whose former schemes provided for these increases.

I am pleased to confirm that past members of the AEA Technology pension scheme with pre-97 accrual will benefit from this measure.