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| Version 0 | Version 1 |
|---|---|
| Ministers face fight on pensions | Ministers face fight on pensions |
| (10 minutes later) | |
| The government is expecting a tight Commons vote over opposition plans to increase help for people whose occupational pensions have collapsed. | The government is expecting a tight Commons vote over opposition plans to increase help for people whose occupational pensions have collapsed. |
| About 30 Labour backbenchers are expected to support an amendment to the Pension Bill, backed by the Conservatives and Liberal Democrats. | About 30 Labour backbenchers are expected to support an amendment to the Pension Bill, backed by the Conservatives and Liberal Democrats. |
| But Work and Pensions Minister James Purnell said the government "should not write a blank cheque". | But Work and Pensions Minister James Purnell said the government "should not write a blank cheque". |
| Tory leader David Cameron called for more help with "heart-breaking" cases. | Tory leader David Cameron called for more help with "heart-breaking" cases. |
| 'Remedy' | 'Remedy' |
| At prime minister's questions, Tony Blair said there would not be an "unfunded commitment " of more help for people whose schemes had collapsed between 1997 and 2005. | At prime minister's questions, Tony Blair said there would not be an "unfunded commitment " of more help for people whose schemes had collapsed between 1997 and 2005. |
| He added that the "cruellest thing" would be to tell people "we can make that commitment and bail them out when it transpires we cannot". | He added that the "cruellest thing" would be to tell people "we can make that commitment and bail them out when it transpires we cannot". |
| During the Pension Bill debate, Mr Purnell said: "The government should not write a blank cheque but organise a remedy." | During the Pension Bill debate, Mr Purnell said: "The government should not write a blank cheque but organise a remedy." |
| The government has pledged an expansion of the current Financial Assistance Scheme to help about 125,000 victims. | The government has pledged an expansion of the current Financial Assistance Scheme to help about 125,000 victims. |
| Last month, Chancellor Gordon Brown announced its funding would be increased from £2bn to £8bn and it would cover everyone who lost all or part of their pensions between January 1997 and April 2005. | Last month, Chancellor Gordon Brown announced its funding would be increased from £2bn to £8bn and it would cover everyone who lost all or part of their pensions between January 1997 and April 2005. |
| It will offer a financial "safety net" to members of about 660 company pension schemes that were closed while insolvent, typically when the employer went bust, before 2005, when new protection came in. | It will offer a financial "safety net" to members of about 660 company pension schemes that were closed while insolvent, typically when the employer went bust, before 2005, when new protection came in. |
| But there has been criticism that the Financial Assistance Scheme is operating too slowly and that thousands of people who have applied for payments may have to wait years. | But there has been criticism that the Financial Assistance Scheme is operating too slowly and that thousands of people who have applied for payments may have to wait years. |
| In the Commons, Mr Purnell announced a concession to critics on the Labour backbenches which, he said, should help a further 8,000 people whose schemes began winding up between January 1 1997 and April 5 2005. | In the Commons, Mr Purnell announced a concession to critics on the Labour backbenches which, he said, should help a further 8,000 people whose schemes began winding up between January 1 1997 and April 5 2005. |
| This would happen "where a compromise agreement is in place and where enforcing the debt against the employer would have forced the employer into insolvency". | This would happen "where a compromise agreement is in place and where enforcing the debt against the employer would have forced the employer into insolvency". |
| He added: "We estimate this will benefit an extra 8,000 people, members of some 15 schemes". | He added: "We estimate this will benefit an extra 8,000 people, members of some 15 schemes". |
| The Pension Bill calls for the state pension age to rise to 68 by 2046. | The Pension Bill calls for the state pension age to rise to 68 by 2046. |
| It also puts forward restoring the link between earnings and the basic state pension by 2012. Critics have said this is "too little, too late". | It also puts forward restoring the link between earnings and the basic state pension by 2012. Critics have said this is "too little, too late". |
| The Tories and Lib Dems both support an amendment to the bill which would give a "lifeboat fund" to offer immediate help to people whose occupational pension schemes have collapsed. | The Tories and Lib Dems both support an amendment to the bill which would give a "lifeboat fund" to offer immediate help to people whose occupational pension schemes have collapsed. |
| This would top up benefits to 90% of their expected pensions package at a cost of £600m. | This would top up benefits to 90% of their expected pensions package at a cost of £600m. |
| Shadow chancellor George Osborne said it would be initially funded by a Treasury loan - and could eventually be paid off through unclaimed pensions assets. | Shadow chancellor George Osborne said it would be initially funded by a Treasury loan - and could eventually be paid off through unclaimed pensions assets. |
| Confidence motion | Confidence motion |
| Last year Parliamentary Ombudsman Ann Abraham ruled the government was guilty of "maladministration", for failing to compensate the workers - but the government rejected her findings. | Last year Parliamentary Ombudsman Ann Abraham ruled the government was guilty of "maladministration", for failing to compensate the workers - but the government rejected her findings. |
| Mr Blair said taxpayers should not have to bail out private pension schemes - and the government could not take on a £15bn compensation bill. | Mr Blair said taxpayers should not have to bail out private pension schemes - and the government could not take on a £15bn compensation bill. |
| Liberal Democrat work and pensions spokesman David Laws said: "Those who have lost their pensions will not forgive MPs who do not back a fair compensation package." | Liberal Democrat work and pensions spokesman David Laws said: "Those who have lost their pensions will not forgive MPs who do not back a fair compensation package." |
| But the Association of British Insurers warned that the proposed "lifeboat fund" would amount to "another hit on pension funds". | |
| Labour leadership hopeful John McDonnell has also tabled amendments to the bill to restore the link between earnings and the state pension immediately and restrict increases in the retirement age. |