John Benson, 79, is receiving a fraction of the pension he paid for
16:54, 06 Dec 2025Updated 16:58, 06 Dec 2025
John says he will never give up(Image: WalesOnline/Rob Browne)
A furious former steelworker has called for the resignations of Chancellor Rachel Reeves and Pensions Minister Torsten Bell. The 79-year-old is one of the victims of the Allied Steel and Wire pensions scandal in Cardiff.
Mr Benson, of Dinas Powys, spoke out after Chancellor Rachel Reeves announced that from January 2027, victims of pensions scandals like ASW would start to receive inflation-linked rises. However, the pensioners have not received any inflationary increases to their pensions payouts since the steel firm went bust in 2002.
The former ASW worker estimates he is currently receiving just half of the pension he paid for, an annual income of £13,000 compared to the £26,000 he would be receiving under the terms of the scheme. Future increases based on the CPI rate will provide some protection from future inflation but do nothing to close the gap between what the pension he receives and the pension he paid for.
In a letter to MPs and Senedd Members, Mr Benson said: “I have Just found out that a Labour Government has once again stitched up workers now pensioners, with their shameful act of treason and betrayal.
“Once again, after a tireless 23 year campaign for justice, they are still trying to deny the former workforce at ASW Cardiff and others, the pensions they paid for and rightfully deserve in full.”
Chancellor Rachel Reeves(Image: PA)
The ASW workers initially feared they had lost all their pensions savings when the firm went bust but a deal brokered by Peter Hain in 2007 gave them and other victims of similar pensions scandals 90% of their lost savings through what was called the Financial Assistance Scheme.
However it was only designed as a compensation scheme there was no inflation protection and the value of that deal has been severely eroded over the last 18 years.
Mr Benson said the Chancellor’s promise in the budget was “another con trick like Labour did in 2007 telling MPs and the country that Labour were going to pay us 90% of our pensions”.
He said: “The appalling way Labour treat workers now pensioners is beyond belief, these men and women worked hard to secure a decent retirement for themselves and their families.
“And have once again been stitched up and fed to the wolves by those they put their trust in. The leader of the opposition told Rachael Reeves to resign, I totally agree, and she should take that arrogant pensions minister [Torsten Bell] with her, both a bloody disgrace to hard working men and women, and the high office they hold.”
Pensions minister Torsten Bell speaking in Parliament(Image: Parliament TV)
Plaid Cymru Work and Pensions spokesperson, Ann Davies MP, has tabled amendments to legislation before Parliament aimed at giving the ASW workers and other pensions victims full protection from inflation and make good their pensions.
She said: “Plaid Cymru has campaigned alongside former Allied Steel and Wire workers for many years, and we know the scale of the injustice they and other members of the FAS and PPF schemes have endured.
“For more than two decades, these pensioners have watched the value of their hard-earned pensions fall because they were not properly protected against rising prices. It is therefore welcome that the UK Government is finally beginning to take action.
“But limiting pre-1997 indexation to a 2.5% cap for those whose schemes originally offered it simply does not go far enough. These workers paid in on the understanding that they would receive a secure and decent retirement. Instead, their pensions have been eroded year after year.
“To fully deliver justice, the government must go further. Ministers should adopt my amendment to the Pension Schemes Bill – removing the cap, backdating payments to make good the losses, and ensuring that surviving dependents are included.”
The changes in the budget were said to be an affordable balance of interests in a difficult fiscal environment.
A DWP spokesperson said: “Supporting pensioners is a top priority and our commitment to the Triple Lock means millions of older people are set to see their State Pension rise by up to £2,100.
“Over 250,000 pensioners will benefit from these increases announced in the Budget – reversing a policy which has been in place for over 20 years.
“On top of this, nine million pensioners will receive the Winter Fuel Payment this year, we have expanded the £150 Warm Home Discount to six million households and given an extra 57,000 pensioner households Pension Credit.”