Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, for what reason the application of inflationary increases on pre-1997 defined benefit pension entitlements is limited to schemes within the Pension Protection Fund and Financial Assistance Scheme; and whether he plans to extend this policy to other defined benefit schemes.

The Government has brought forward legislation to introduce annual CPI-linked increases, capped at 2.5 per cent, on compensation payments from the Pension Protection Fund and Financial Assistance Scheme based on pensions built up before 6 April 1997. These increases will apply prospectively (i.e. to payments going forward) and where the original scheme rules provided for such increases.