Money
Pensions
Campaign for pensions justice: 90 per cent of what, Gordon?
At Prime Minister's Questions this week Gordon Brown said he was hoping to announce, in the next few days, that he could 'guarantee' all the 125,000 people who lost their company pensions would see payments from the Financial Assistance Scheme (FAS), increased from 80% to 90%
Victims who have been lobbying their MPs in Parliament, however, have no idea what this means. And given the Prime Minister's previous form on this issue, they need more detail, writes Dr Ros Altmann
Earlier this year, the Prime Minister announced, with much fanfare, that they would all get 80% of their pensions restored. The reality, however, is that thousands are still totally excluded from the FAS and many of the victims who are years past their retirement age have still not had anything at all.
In fact, the Financial Assistance Scheme (FAS) will never pay them anything like 80% of their pensions. The FAS pays 80% of something that the Government invented called 'core' pension, which is far less than the pension they paid for and which they were assured by Government was completely safe. So when we hear about '90%', we have to be very careful.
The Prime Minister needs to explain what his statement means. Ninety per cent of what? When will payments be made? Why has the Department for Work and Pensions review of scheme assets been delayed beyond the end of November date when publication was promised? Will thousands of those affected still be excluded from the FAS, despite assurances that 'all' the 125,000 would be helped?
On Saturday, Peter Hain told one of his constituents that the DWP review had found enough money to pay at least the same benefits as would be paid by the Pension Protection Fund (PPF). But that is not what the Prime Minister told the House. Why not? Is it because the DWP has not managed to persuade the Treasury to sort this scandal out fairly and properly? Is the Prime Minister is determined to prolong the agony and string the scandal out still longer? We need to know.
Burying the report just before Christmas seems to be a distinct possibility. If this is another attempt at fobbing everyone off with fine words and no money, it won't work.
Enough is enough. Why not just clarify what is meant here. All the independent reviews have gone against the Government. Northern Rock savers were rescued 100% with billions of pounds of taxpayers' money. There are no more valid excuses. I do hope that the Government will at last commit to a fair and final resolution of this problem and let the victims enjoy a better Christmas for once. I don't really know how politicians can enjoy their holidays otherwise.
* Greatly respected within the pensions industry, Dr Ros Altmann has helped spearhead the Pensions Action Group's campaign. Her views are her own and for general information only.
