Labour's Pension Disgrace

Local people are familiar with the disgraceful story of how the Labour Government has dealt with those who have lost their Occupational Pensions between 1997 and 5th April 2005. Those for example who worked at Chesterfield Cylinders, Dema Glass and Coalite, who along with at least 60,000 others around the UK saw their savings for retirement 'stolen' away.

New pensions legislation came into effect in 1997 following the Maxwell scandal that saw Mirror Group pensioners defrauded of their retirement money. The new Government sent out leaflets to all those with occupational pensions telling them that the new legislation made their pensions 'safe and guaranteed' and encouraging them to keep paying into these schemes. After all, with Gordon Brown paying out one of the worst State Pensions in Western Europe, people need a second pension if they are not to be stuck in poverty in their retirement!

The Ombudsman ruled earlier this year that these Government reassurances clearly misled people and they should pay compensation to those, as in Chesterfield, who found that in fact their works pension WAS NOT 'safe and guaranteed' but disappeared like smoke when the firm went into receivership. Blair's Government promptly told the House of Commons that they were going to completely reject and ignore the Ombudsman's findings.

Two Unions have now taken the case to the European Court of Justice - although it could take until 2009 before a judgement is reached. Blair and Brown's response? Government lawyers at very short notice, have asked the European Court to rule that any favourable judgement should only apply to those whose individual names are lodged with the Court by a fixed date. The Judge's ruling on this could be made as early as July 13th. If it has been made that quickly and if it was in the Government's favour then MOST of the 60,000 'robbed' pension holders will be robbed once again.

I have fought the Government for justice on this issue since 2001.While serving on the last Pensions Bill Committee I helped persuade the Government to introduce the Financial Assistance Scheme. This is supposed to help those who lost out from 1997 up to the start of the new Pension Protection Fund in 2005. The completely inadequate amount of money provided by Gordon Brown's Treasury has so far however paid out to just 27 people out of 60,000 and will never provide more than a fraction of what is needed.

Meanwhile New Labour MP's pretend that their Government is helping out as best it can. The reality is, disgracefully, quite the opposite.