Hain promises ‘justice’ for pensioners
Work and pensions secretary Peter Hain today promised redress for the victims of collapsed pension schemes.
He told union delegates in Brighton he was committed to “justice” for the pensioners “robbed” of their pensions when companies went bust.
The government has been criticised for failing to fully compensate employees who lost their savings in failed occupational pension schemes.
As prime minister, Tony Blair repeatedly rejected calls from the Conservatives to match lost funds pound-for-pound, insisting the government would not make un-costed promises.
But today, Mr Hain said: “I am now committed to doing all I can to increase assistance level towards 90 per cent and arrive at a settlement acceptable to trade unions and pensioners themselves.”
In this year’s Budget the government agreed to compensate workers for 80 pence in every pound lost, by increasing funding for the Financial Assistance Scheme from £2.3 billion to £8 billion.
The pensions secretary assured union delegates the government had also taken steps to prevent a repeat of the scandal by introducing the Pension Protection Fund.
And in a speech stressing the government’s commitment to delivering justice, he said pensioners were set to be beneficiaries of a new consensus on pensions.
He told delegates the forthcoming pensions bill would renew the social contract by stressing the shared responsibility for workers, employers and the government to provide for retirement.
- Mr Hain also promised to take urgent action to reverse the “macabre toll” of construction deaths.
He announced a special forum had already been convened with the Health and Safety Commission and unions.
Mr Hain said the government’s renewed commitment to house building must not have “the blood of construction workers in the foundations”.
- The work and pensions secretary fell victim to the conference’s most dramatic protest so far. His speech was disrupted by GMB delegates demanding action for Remploy workers.
Mr Hain insisted he was committed to protecting the disabled workers’ jobs, but said Remploy must be prepared to change.
“Remploy has a good future. Every one of its workers will get the protection and the opportunities they deserve,” he said.
