Pension Protection Fund

Elfyn Llwyd Excerpts

Tuesday 22nd November 2011 Westminster Hall

[Jonathan Evans (Cardiff North) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Brooke. I shall begin by drawing attention to my entry in the Register of Members’ Financial Interests, although I am not aware that any of the companies to which I am connected have any current business associated with any of the issues that I intend to raise. It is, however, important that I draw the entry to Members’ attention.

I am grateful for the opportunity to discuss important and unresolved issues in relation to the operation of the Pension Protection Fund and the financial assistance scheme, and their impact on a group of former employees of Allied Steel and Wire, a number of whom are my constituents. I want to begin by acknowledging the relentless work of Mr John Benson of the Pensions Action Group, and by thanking the chief executive officer of Saga, Ros Altmann, who has been a consistent supporter of the former workers, who have been stripped of their pensions through no fault of their own.

I would also like to thank my parliamentary colleagues, my hon. Friends the Members for Beckenham (Bob Stewart), for Sittingbourne and Sheppey (Gordon Henderson), who also has an ASW interest, for Vale of Glamorgan (Alun Cairns)—John Benson is one of his constituents—and for Montgomeryshire (Glyn Davies), as well as the right hon. Member for Dwyfor Meirionnydd (Mr Llwyd) and the hon. Members for Arfon (Hywel Williams) and for Cardiff West (Kevin Brennan), for attending the debate. We have discussed the issues with all of them over time. I should also like to mention the hon. Member for Cardiff Central (Jenny Willott), who is unable to attend the debate because of conflicting public duties, but who has been a consistent supporter of the workers.

Ever since the early part of the 20th century, Parliament has recognised the need to promote proper and adequate pension provision for those in their later years. We have seen the development of the state pension system and its refinement and adjustment in a variety of ways that still continue to this day. Overlaying that, Parliament has rightly encouraged people to make better provision for themselves through occupational or private pension routes. Again, we see that issue at the forefront of parliamentary debate. The Minister of State, Department for Work and Pensions, the hon. Member for Thornbury and Yate (Steve Webb), has responsibility for the latest Pensions Bill, which is currently in another place, and there has been legislation on pensions in this House on an almost annual basis in recent years.

On the 30th of this month, we anticipate a major public services strike because of Government plans to adjust the future pensions benefits of public sector workers. The merits of those arguments are matters for another debate, but what is undeniable is that the Minister and his colleagues in Government have been at pains to stress that, irrespective of the outcome of the negotiations, the current accrued pensions rights of all public sector workers will be honoured. The then Government made a similar pledge to Northern Rock workers when the bank was taken into public ownership in 2007, and matched that promise in respect of each of the other banks that have found themselves in the public sector.

The reason why such pledges are important is that the success of pension saving depends on the maintenance of trust—trust that, if someone makes regular contributions, they will in due course receive nothing less than the sum that has been promised to them. That trust was significantly shaken 20 years ago by revelations that Robert Maxwell had stolen £460 million from the pensions of Mirror Group Newspapers workers, which led to the establishment of the Occupational Pensions Regulatory Authority in 1995. From that time onwards, workers in company pension schemes had every reason to believe that their pensions would be safe. As Ros Altmann put it in a letter to the Financial Times some years ago:

“Members were told that their accrued pension rights were protected in law and that actuaries would calculate contributions, in line with the minimum funding requirement, to ensure adequate funding to pay the promised pensions.”

[Mr Elfyn Llwyd (Dwyfor Meirionnydd) (PC)]

I congratulate the hon. Gentleman on securing this debate. He is making a powerful case. I support everything that he is doing and agree with all Members present that justice has to be done for this group of pensioners. I would also like to mention that the hon. Member for Newport West (Paul Flynn) is also present.

[Jonathan Evans]

I apologise for failing to mention the hon. Member for Newport West (Paul Flynn). He regularly attends all such debates. I had presumed that he was present for the previous debate on Colombia, without realising that he also wished to contribute to this one. I am happy to put the record straight on that and to give credit to the right hon. Member for Dwyfor Meirionnydd and his colleague, the hon. Member for Arfon, for their support for the ASW workers.