Oral Answers to Questions

Helen Morgan Excerpts

Monday 27th October 2025 Commons Chamber

[Helen Morgan (North Shropshire) (LD)]

16. What steps he is taking to help tackle the potential impact of the lack of indexation on pre-1997 pensionable service in defined benefit pension schemes on people affected.

[The Parliamentary Under-Secretary of State for Work and Pensions (Torsten Bell)]

I obviously recognise the challenges facing those without inflation protection, particularly after the cost of living pressures of recent years, and I think that recognition is shared by Members on both sides of the House. I met a cross-party group of MPs earlier this year to discuss exactly this issue. Reforms in the Pension Schemes Bill give trustees more flexibility to share surpluses in their DB pension schemes with employers, and to negotiate for members to benefit from any such sharing of surpluses. That could include discretionary increases to address the issue raised by my hon. Friend the Member for Llanelli (Dame Nia Griffith).

[Torsten Bell]

I absolutely recognise the issue that my hon. Friend has raised: any of us in that situation would want those pension increases to continue. She is aware of the legal background, but I should point out that scheme rules govern when inflation-linked increases can be paid. They are not changed retrospectively, but the Pensions Regulator has spelt out that trustees should consider those who are not receiving inflation-linked increases when making their decisions, and should also consider the history of making such awards—particularly in some of the examples that my hon. Friend has given. As I have said, I think that the provisions in the Pension Scheme Bill give trustees more power to argue for those increases.

[Helen Morgan]

I have been contacted by a constituent who, along with her husband, worked for Hewlett Packard. They accrued their pensions before 1997, and now, along with about 50,000 members of the Pre-97 Alliance, they are facing real financial hardship. In 10 years’ time, their pensions will be pretty much worthless. Will the Minister not consider legislating to ensure that these people are not left in poverty, having been promised proper pensions when they started work for the companies concerned?

[Torsten Bell]

The hon. Lady has mentioned a specific company, although a small number of others are in the same position. I am sure that not only the people running that company but the trustees will have heard the powerful case made by Members on both sides of the House. These decisions must be made in line with the scheme rules, but no one wants savers to see the value of their pensions fall over time, and I hope that employers will take the case being made in the Chamber seriously.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Work and Pensions (Andrew Western)]

I thank my hon. Friend for his question. The Government plan to consult on changes to the calculation that will automatically capture more income types within that calculation. Where parents wilfully avoid their financial obligations, the CMS financial investigation unit does have the powers to act and will investigate. Child maintenance is key to keeping children out of poverty, and we will use these powers wherever necessary.

[Helen Morgan (North Shropshire) (LD)]

T5. The 25-year-old son of one of my constituents unfortunately lost his leg when it was amputated above the knee after a motorcycle accident, but he was awarded personal independence payment and a specially adapted car, and he has been able to rebuild his life. However, in August he was told that the PIP and the adapted car would be withdrawn from him. Sadly, he is clearly not going to get any better. How can we be in a situation where people whose condition is permanent are having their support withdrawn?

[Sir Stephen Timms]

I would be very happy to look into the particular case the hon. Member raises. Of course, an appeal process is available, so I hope that her constituent has submitted an appeal. If she lets me have the details, I will gladly have a look at the case.