Pensions Reform

There is much merit in that point and I am sure that it has been noted by the Minister. I hope that he will address it when he winds up this evening. In the statement a couple of weeks ago, and again today, the Secretary of State made a great deal of the financial assistance scheme and the extra money that is being put into it. I do not decry that extra money, but those of us who represent workers affected by the scandal of pension schemes—they will not go away, because they have a just case that has to be answered—know that the financial assistance scheme does not adequately address the injustice that has been inflicted on them. For instance, the payments under the scheme are not inflation-linked, even though the pensions would have been. The scheme starts only at age 65, but the expected pension would have started from the scheme pension age, which is often below 65. The FAS payments are made in full only when the wind-up of the company has been completed, but expected pensions would have been paid as soon as pension age is reached. The scheme payments are capped at £12,000, so they decline in value over the years. FAS payments have no tax-free element. The scheme also pays only 50 per cent. of the benefit to a surviving spouse, but they would normally receive at least 50 per cent. of the full expected pension. FAS payments halve immediately if a member dies soon after retirement, whereas ongoing schemes usually continue paying full pension to surviving spouses for a few years. If members die young, the FAS pays nothing, and survivors are left without any insurance, whereas expected pension benefits include life assurance cover. The FAS pays no ill-health benefits, but most schemes offer ill-health cover. Those are just some of the criticisms that workers in those dire straits have put to me.