Question to the Department for Work and Pensions:

To ask the Secretary of State for Work and Pensions, what recent discussions she has had with Hewlett Packard on the change in value of pre-1997 pension scheme members’ pensions; and what steps she is taking to support affected pensioners.

The Department for Work and Pensions has had no discussions with Hewlett Packard on this issue. Discretionary increases in benefits above the statutory minimum and those required by scheme rules are a matter for the scheme sponsor and trustees.

Most schemes do pay some pre-1997 indexation, because of scheme rules or as a discretionary benefit. Analysis published last year by the Pensions Regulator shows that as of March 2023, only 17 per cent of members of private sector defined benefit pension schemes did not receive any pre-1997 indexation on benefits. This information can be found at: https://www.thepensionsregulator.gov.uk/en/document-library/research-and-analysis/data-requests#f3a5fe60511a445f91112bd7dd8a64ae

The Government’s pension reforms on the use of surpluses in defined benefit schemes will make it easier for individual schemes to make decisions that improve outcomes for both sponsoring employers and members, which could include discretionary benefit increases. These changes are being taken forward through the Pension Schemes Bill which had its second reading on Monday 7^th July.