Oral Answers to Questions

Debate between Eleanor Smith and Esther McVey

Monday 26th March 2018 Commons Chamber

[Eleanor Smith (Wolverhampton South West) (Lab)]

1. What steps she is taking to ensure support for former Carillion employees whose pensions will not be covered by the Pension Protection Fund.

[The Secretary of State for Work and Pensions (Ms Esther McVey)]

There are 12 Carillion defined benefit schemes in a PPF assessment period. The PPF is working with scheme administrators to determine whether they can pay pensions at or above PPF benefits. Where a scheme cannot do this, the PPF will assume responsibility and pay compensation.

[Eleanor Smith]

The workers in the Carillion defined contribution scheme should not have to suffer any detriment to their pension. Will the Government be looking to draw back bonuses paid to the Carillion executives to put back into the pension funds?

[Ms McVey]

As I said, the Carillion schemes are at present in the assessment period for the funds, and we are looking at what happened in those instances. The hon. Lady will be pleased to know that we have brought forward our White Paper on defined benefits and increasing the regulator’s powers to support these schemes in the best way possible, to make sure pensioners get those pensions that they so rightly deserve. It is the Conservative party that will be strengthening that for workers, to make sure we look after such pensioners.