View more on these topics

Tories’ fury as Purnell refuses to help victims

Minister attacked over letter to absent committee members

The Tories have made a fierce attack on the Government after pensions minister James Purnell ruled out any more help for 125,000 pension victims.

The Conservatives slammed the response to the public administration select committee’s damning assessment of the treatment of victims of occupational pension collapses.

Last week, Purnell sparked anger by writing to the comm- ittee when all its members were overseas. He said the Government had committed over £2bn to the Financial Assistance Scheme which he estimates will help 40,000 people.

Tory Work and Pensions Secretary Philip Hammond has criticised the Government for continuing to reject the Parliamentary Ombudsman’s finding of maladministration and recommendation that it should compensate the victims.

Hammond says: “It is a disgrace that the Government continues to defy the ombudsman and deny all responsibility for pensions that have been lost under its watch. We accept the ombudsman’s finding of maladministration and accept that mistakes were made. The Government should do the same.”

Pension expert Ros Altmann says the latest announcement is outrageous and compares it with the pensioners who received Government aid after the Robert Maxwell’ scandal.

Purnell gave details of a “buyback” scheme which will allow 10,000 people to be fully or partially reinstated into S2P.

He said the Government will work with The Pensions Regulator to ensure schemes should be wound up within two years to speed up the process of getting money to the victims.

Purnell said: “We have sympathy for those who have lost their occupational pensions and this is why we have put the FAS in place. However, we do not believe that the taxpayer should be expected to underwrite what were private company pension schemes.”

Comment, p39


Take steps to sales

A simple plan can raise public confidence in protection insurance

Bolton attacks BM over his own mortgage offer

Edeus chief executive Michael Bolton launched a stinging attack on former employer HBOS this week in an extra- ordinary public slanging match between the two sides. Speaking at the Mortgage Intelligence 10th anniversary conference in Wales, Bolton said BM Solutions tried to “stuff” him personally on his mortgage with an offer 100 basis points above […]

Field slams HBOS on Farepak collapse

Labour MP Frank Field has laid down an early-day motion attacking HBOS for its “pivotal” role in the collapse of Christmas savings firm Farepak. He says HBOS allowed Farepak to continue trading while it clawed back around £1m a week of people’s savings to offset the company’s overdraft with the bank.

Pensions Regulator lays subsisting rights code of practice before Parliament

The Pensions Regulator’s code of practice on the modification of subsisting rights has been laid before Parliament.This code explains that, under the Pensions Act 2004, changes cannot be made to scheme rules without the consent of scheme members or an actuarial equivalence certificate – depending on the type of modification.The code of practice gives guidance […]

Embrace simplicity!

By Fiona Holmes, proposition communications manager When I first took out critical illness cover, I was overwhelmed. It wasn’t just the form filling, it was finding out about the sheer number of illnesses I was covered for. Did it give me peace of mind that I was covered for neuromyelitis optica or systematic lupus erythematosus? […]


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    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