Pension Protection

No justification for further Government delays to Regulations for loyal, long-serving pensioners: It is very disappointing that the DWP has failed to lay the Regulations that will allow pensioners to receive higher payments from the Pension Protection Fund. A minority of workers in failed firms have lost more than half their pension payments and are waiting for increased compensation that had been delayed for years.

The Regulations are ready to be laid this week – further delays are simply unfair: Having pushed DWP officials to get the required Regulations ready to increase the PPF cap, they should be laid immediately. All the necessary work has been completed and we planned to announce the regulations this week. It is so disappointing that the DWP has failed to act, causing further unfair delays to those affected.

Compensation won’t be backdated so any delay adds to the injustice: Those workers entitled to fairer compensation from the PPF have already been waiting for years. It is true that the PPF offers good compensation to most people whose employer fails, however the PPF cap hits some pensioners’ payments significantly. In many cases they lose more than half their pension and this was recognised as unfair a few years ago. These higher pension payments will only begin from the date the regulations are actually laid, they will not be backdated. So each week of delay can mean the pensioners losing hundreds of pounds which they can never recover.