New
proposals to support workers who have lost their pensions have been unveiled by
the Government.
The
Pensions Bill introduces a Pension Protection Fund (PPF) that will ensure
workers get a decent pension even if their firm goes bust. But this is cover for
the future, and cannot help those who have already lost out.
Pensions
secretary Andrew Smith is now adding an amendment to the Bill to help thousands
of workers who have already lost out in pension wind-ups, so that they are
eligible for new help.
The
proposals establish a fund, with £400m of public money to be paid in over 20
years, with the possibility of further contributions from industry.
Andrew
Smith said: "This will give real help to people who have lost their life
savings through no fault of their own. I’ve met many of those affected and am
convinced that taking action is the right thing to do. It will also give a huge
boost to wider confidence in pensions."
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As
part of the process, the Department for Work and Pensions is completing its
detailed research into the extent of the problem and the numbers of those
affected. It will consult on how assistance will be delivered, including any
further legislative changes that are required.
