Marvin OnumonuChancellor Rachel Reeves has announced a new policy to index pensions accrued before 1997 for inflation in the Pension Protection Fund (PPF) and Financial Assistance Scheme (FAS).
Reeves said: “I will index for inflation on pensions accrued before 1997 in the Pension Protection Fund and the financial assurance scheme, so that people whose pension schemes became insolvent no force of their own no longer lose out of the result of inflation.”
Previously, members of schemes that collapsed before 1997 saw no inflation increases on their pensions, leaving many, including former coal industry workers, with static payments.
The policy will mean these pensions are increased each year in line with inflation.
The change is part of a broader move to address historic pension issues and forms part of the Government’s recent commitments to compensate and support affected groups.
