Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, if she will make an assessment of the potential merits of allowing compensation relating to pre-1997 pensionable service for Pension Protection Fund members to be indexed.

We are committed to consider and reflect on what we have heard on the issue of Pension Protection Fund and Financial Assistance Scheme rules on the indexation of pre-1997 pension accruals.

Any change in this area has significant implications on public finances for both the taxpayer funded Financial Assistance Scheme and for the Pension Protection Fund which is levy-funded. These are complex matters requiring a balanced approach for those receiving compensation, levy payers and taxpayers. This is an important issue and one where we will continue to work with the Pension Protection Fund.