Question to the Department for Work and Pensions:

To ask His Majesty's Government what representations they have received from former Allied Steel and Wire workers who lost part of their pension entitlement, and what response, if any, have they made.

My hon. Friend the Minister for Pensions has met with representatives of Financial Assistance Scheme members, including former Allied Steel and Wire workers, and has heard first-hand how they have been affected by their scheme qualifying for the Financial Assistance Scheme. These meetings follow correspondence from these members, parliamentarians and from members of the Welsh Assembly.

We know that the pension compensation system and the safety net it offers needs to work harder for members. That is why we have brought forward legislation to introduce annual increases on compensation payments from the Pension Protection Fund and Financial Assistance Scheme based on pensions built up before 6 April 1997. These increases will be CPI-linked (capped at 2.5%) and apply prospectively (i.e. to payments going forward) for members.

I am happy to confirm that former members of Allied Steel and Wire will benefit from these changes.