Sylvia Heal

Labour Party | Halesowen and Rowley Regis

Sylvia backs Government action to help pensioners

Sylvia Heal MP has today welcomed the Governments substantial package of help for the 140,000 people who lost savings when their employer-sponsored pension schemes collapsed.

The Government has decided that, as well as increasing assistance for those affected to 90% of their accrued pension, the settlement will extend cover to 11,000 people in schemes wound up by qualifying solvent employers.

This means that up to 140,000 people in total could potentially be eligible for help, providing a pension for which they had saved but which had been lost when their company schemes went under.

Sylvia Heal MP said: “I am very pleased that the Government have made this announcement which will see up to 140,000 people eligible for help. People who had done the right thing and saved for later in life only to find they were not able to receive their pension. This announcement will provide justice for the 140,000 people affected when their schemes were wound up, including members of schemes where the company is still solvent.  I think this weeks announcement builds on the substantial steps the Government have already taken to put right the unfairness they experienced”.

The announcement on Pension schemes came weeks after Pensions Secretary, Peter Hain MP unveiled plans to improve and make more efficient the system for people to claim the State Pension and other benefits. Pensioners will now be able to access four benefits in one phone call to the Pension Service- Pension Credit, State Pension, Housing Benefit and Council Tax Benefit. At the moment pensioners lose their Pension Credit after four weeks abroad, the rules are now to be changes so pensioners can spend up to thirteen weeks away from UK.

Sylvia Heal added: “I think these new plans will make it much easier for all pensioners to claim their State Pension helping to ensure that they receive all the benefits they are entitled to. More and more pensioners now spend some of the winter months abroad the extension from four to thirteen weeks before Pension Credit is lost recognises this.”