Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what assessment has been made as to the (a) merits of and (b) funding for retrospective indexation arrangements for all pre 1997 pensions scheme members.

Most defined benefit schemes pay some indexation on pensions earned before 1997. The Government recognises that the absence of indexation on pre-1997 rights in pension schemes can erode the value of pensions over time and affect members who rely on these benefits in retirement.

Reforms in our Pension Schemes Bill will enable more trustees of well-funded defined benefit pension schemes to share surplus with employers, deliver better outcomes for members, and benefit the wider economy. As part of any agreement to release surplus funds to the employer, trustees will be better placed to negotiate additional benefits for members, including discretionary indexation.