Ayr, Carrick and Cumnock MP comments on Court Judgement on the Government’s Response to the Ombudsman’s Report concerning the security of Occupational Pensions Schemes

The High Court in London ruled on Thursday 22nd February that the Government should have accepted the finding of the Parliamentary Ombudsman that official information published with regard to pension schemes was inaccurate and misleading and, therefore, amounted to maladministration. However, the Court did not accept that this was a significant contributory factor in the creation of the financial losses suffered by individuals and said that this was ‘logically flawed and unreasonable’.

This judgement follows on from the decision of the European Court of Justice ruling in January which required the Government to reconsider whether or not the present arrangements offer sufficient protection for people’s pensions when their employer becomes insolvent.

The Secretary of State for Work and Pensions, John Hutton, has said he will review the financial assistance being offered in the light of these court judgements and will report his conclusions and his proposals for how he intends to proceed before the conclusion of proceedings on the Pensions Bill which is currently going through Parliament.

Sandra Osborne tabled an amendment to the Bill yesterday which would make provision in law for at least the same level of compensation as is available through the Pension Protection Fund. This has been brought in so that in future people will not suffer the loss of their pensions with no right to reasonable redress ever again.

Sandra said:
‘I am delighted that the Court has recognised that inaccurate information, particularly in the 1995 Pensions Act, did indeed mislead people into thinking their company pension was guaranteed. However, it is a mixed ruling and does not oblige the Government to provide a specific level of compensation.

I am pleased, however, that the Government has indicated they will look at this again as I have been repeatedly calling for this. Of course, I welcome the £2.3 billion which has already been provided in financial assistance but it is not adequate and leaves many people out. It is long overdue that the suffering should stop and this gross injustice should be put right once and for all.  I have tabled an amendment to the Pensions Bill as it is important that the Government understands the strength of support for our campaign and that we expect justice to be done.’