Angela Watkinson

Conservative Party | Upminster

Final Salary Pension Schemes

Angela Watkinson (Upminster) (Con): What measures will be taken to address the problems surrounding the closure of final salary pension schemes.

Mr. James Clappison (Hertsmere) (Con): What plans he has to protect the pensions of past and present members of final salary pension schemes.

The Minister for Pensions (Malcolm Wicks):Improving protection for members of final salary pension schemes is a government priority. Through new legislation and, in particular, the pension protection fund, we are taking action to ensure that a pension promise made is a pension promise honoured. The pension protection fund will be introduced in the forthcoming pensions Bill.

Angela Watkinson: I thank the Minister for that response. What specific hope can he give to my constituent, Mr. Clothier, a former employee of Bradstock? Bradstock's pension scheme was terminated by a commutation prior to insolvency and was extremely underfunded, and Mr. Clothier finds that the product of 19 years of contributions will barely cover his council tax.

Malcolm Wicks: Having met many workers in that kind of situation, I have a clear understanding of the heartbreak and impact on health and family life that can be occasioned by that kind of disaster for individuals. We had a full airing of this issue when my when my right hon. Friend the Secretary of State took not dissimilar questions on the matter, and I cannot add to what he said on that occasion. While there is an issue about the present, at least we now have a government who, by legislating for a protection fund, will ensure that that kind of scandal never occurs again in Great Britain.