View more on these topics

Pension lifeboat is sunk

The Government has come under fire for using the Parliament Act to quell opposition to its treatment of victims of collapsed occupational pension schemes.

The House of Lords looked set to renew support for an amendment calling on the Government to start a lifeboat scheme using an emergency loan to help victims who have still not received support from the Financial Assistance Scheme.

The Government defeated the Pensions Bill amendment in the Commons last week.

It has now ruled that as the issue is a financial matter, the Commons has primacy on the matter under the Parliament Act 1911 and the Lords cannot reintroduce it.

Conservative Shadow Work and Pensions Secretary Chris Grayling says: “This is a blatant attempt to gerrymander the Parliamentary process. The issue was becoming too politically embarrassing and it wanted to close it down.”

A Department for Work and Pensions spokesman says: “It is the prerogative of the democratically elected house to control charges on public funds.”

Pension reform minister Mike O’Brien has promised extra support for people in the FAS to bring their payments in line with the Pension Protection Fund. This is to be done by “working the assets of collapsed pension schemes harder”.

But pension campaigner Ros Altmann says this is “the cruellest possible way” to help pension scheme victims.

She says the assets review, led by Andrew Young of the Government Actuary’s Department, found that collapsed schemes have £1.7bn in assets – £700m more than estimated – and the Treasury should issue an emergency loan against this to help those most in need.

Altmann says: “The whole tone of pension minister Mike O’Brien’s speech is just political spin and will provide no relief to those who desperately need it.”

Tory Shadow pensions minister Nigel Waterson said: “O’Brien said the lifeboat was holed and was sinking but it is the pension victims who are already drowning. The minister should remember that.”

For more pension news, see www.moneymarketing. co.uk/pensions

Recommended

LV= cuts income protection rates

LV= has cut its income protection rates, with 80 per cent of its level premium rates reduced by an average of 11 per cent and 70 per cent of its index-linked rates cut by an average of 6 per cent. The move marks the fourth phase of LV=’s protection range review, following recent enhancements to […]

Spiers selling off Bestinvest stake

Bestinvest founder John Spiers has brought an end to months of speculation surrounding the company by selling a large portion of his majority shareholding to global private equity and venture capital firm 3i.The deal, for an undisclosed sum, will see the firm take a majority holding in the business, with Spiers retaining a stake and […]

Clear sighted

There is a fad to describe something that is clear as being transparent or, more usually, something that is unclear as not transparent, as in “the charging structure is not transparent” rather than “the charging structure is not clear”. The point about transparency is that you can see through it to something on the other […]

Tapering of annual allowance – adjusted and threshold income

The definitions of adjusted income and threshold income used to determine whether, and to what extent, someone’s annual allowance will be reduced can be confusing.  Here we try to make sense of it all. The annual allowance will be reduced for high income individuals from 6 April 2016.  Our previous article Tapering of annual allowance […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com