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Ministers win fight over pensions | Ministers win fight over pensions |
(about 3 hours later) | |
The government has defeated Labour rebels over calls to give more help to people whose occupational pension schemes have collapsed. | The government has defeated Labour rebels over calls to give more help to people whose occupational pension schemes have collapsed. |
Ministers saw off an amendment to the Pension Bill, also backed by Tories and Lib Dems, by 22 votes. | Ministers saw off an amendment to the Pension Bill, also backed by Tories and Lib Dems, by 22 votes. |
Ministers said the government should not write a "blank cheque", but Tories argued more help was needed with "heart-breaking" pension cases. | Ministers said the government should not write a "blank cheque", but Tories argued more help was needed with "heart-breaking" pension cases. |
Fifteen Labour MPs, including five ex-ministers, backed the amendment. | Fifteen Labour MPs, including five ex-ministers, backed the amendment. |
'Remedy' | 'Remedy' |
Among them were party leadership candidates Michael Meacher and John McDonnell. | Among them were party leadership candidates Michael Meacher and John McDonnell. |
During the debate, pensions minister James Purnell said: "The government should not write a blank cheque but organise a remedy." | During the debate, pensions minister James Purnell said: "The government should not write a blank cheque but organise a remedy." |
Ministers have previously pledged an expansion of the current Financial Assistance Scheme to help about 125,000 victims. | Ministers have previously 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 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 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". |
'Pain' | 'Pain' |
Shadow work and pensions secretary Philip Hammond said: "If we are going to have a solution to these problems we have got to recognise that we are all in this together. | Shadow work and pensions secretary Philip Hammond said: "If we are going to have a solution to these problems we have got to recognise that we are all in this together. |
"There has to be a sharing of their pain." | "There has to be a sharing of their pain." |
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". | But the Association of British Insurers warned that the proposed "lifeboat fund" would amount to "another hit on pension funds". |
At prime minister's questions earlier, Tony Blair said there would not be an "unfunded commitment " of more help. | At prime minister's questions earlier, Tony Blair said there would not be an "unfunded commitment " of more help. |
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". |
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 bill was given an unopposed third reading and now goes to the Lords |