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Ann Davies MP<\/p>\n Ann Davies MP<\/p>\n
Martin Shipton<\/p>\n
Plaid Cymru MP Ann Davies has again raised in the House of Commons the plight of former Allied Steel and Wire workers who have been campaigning for pension justice for 23 years.<\/p>\n
When the Cardiff steel firm crashed in 2002, its employees lost the pensions they had been paying into for years.<\/p>\n
Schemes were later set up that paid them some compensation, but contributions made pre-1997 were not index linked.<\/p>\n
Now the UK Government has said that those elements of their pension that were not index linked will in future accrue increases up to a maximum of 2.5% per year.<\/p>\n
But Ms Davies, the MP for Caerfyeddin,said that wasn\u2019t enough.<\/p>\n
She outlined her amendments to extend inflation protection and provide backdated payments. After the Pensions Minister \u2013 Swansea West MP Torsten Bell \u2013 rejected the original amendments, she introduced a revised clause requiring the Government to create regulations to deliver this protection.<\/p>\n
She welcomed recent Government action but argued it is too limited because it caps increases and only applies to certain schemes. She called for broader changes to ensure full indexation and backdated compensation for all affected pensioners, including former ASW workers.<\/p>\n
Coal mining\u00a0<\/p>\n
In her speech, Ms Davies said: \u201cThe coal mining legacy of south Wales extends to my constituency of Caerfyrddin, with the Amman and Gwendraeth valleys bearing the scars of previous industry.<\/p>\n
\u201cIt is then of no surprise that my constituents are among those whose funds have been withheld, causing immense hardship for these pensioners who paid into the system for decades.<\/p>\n
\u201cIn fact, over 20 local residents came to my drop-in session earlier this year to share their stories of how this long-running issue affected their lives.<\/p>\n
\u201cWhen the honourable member for Aberdeen North [the SNP\u2019s Kirsty Blackman] kindly raised this same amendment on my behalf at Committee stage, the Minister\u2019s answer gave some hope of long-awaited action.<\/p>\n
\u201cI therefore welcome the recent confirmation that the UK Government has finally listened, and has implemented the transfer of the full \u00a32.3bn reserve to trustees \u2013 and I pay tribute to the hard work of my constituents and to former mineworkers everywhere for their long-fought campaign to make this day a reality.<\/p>\n
\u201cFormer Allied Steel and Wire workers have also campaigned tirelessly to receive their rightful dues in retirement.<\/p>\n
\u201cWhen the company went bust in 2002, former Allied Steel and Wire (ASW) employees lost their livelihoods and their pensions which they had worked hard for and relied upon for security later in life. \u201cThe Financial Assistance Scheme (FAS) and the Pension Protection Fund (PPF) were introduced to provide some relief to pensioners in such situations \u2013 but pension contributions made before April 1997 were not inflation proofed, leaving pensioners without the secure retirement they were promised.<\/p>\n
\u201cThat\u2019s why I put forward two amendments at Committee Stage to extend the indexation of compensation under the FAS and PPF to cover both pre-1997 and post-1997 service, and reimbursing members for the annual increases they should rightly have received.<\/p>\n
\u201cAfter the Minister for Pensions responded that the amendments could not work, I went back to the drawing board \u2013 you know we never give up in Wales, you see \u2013 and sought advice to address his concerns.<\/p>\n
\u201cNew Clause 6 is the result of that advice \u2013 requiring the Secretary of State to make regulations to provide for that indexation.\u201cNow, I welcome the recently announced action by the UK Government to finally start addressing this injustice.<\/p>\n
\u201cBut limiting pre-1997 indexation to a 2.5% cap for those whose schemes originally offered it simply does not go far enough.<\/p>\n
\u201cI add that as of earlier this afternoon, I have not received an answer to my written question asking how many FAS and PPF members will not benefit from the government\u2019s measure because of this caveat. I would welcome a response within the next few days.<\/p>\n
\u201cThe UK Government should instead adopt my amendment \u2013 which provides no cap on inflation, includes reimbursements to make good losses, and specifies application to transferee members, ill health payments and to payments to surviving dependents.<\/p>\n
\u201cAffected pensioners must be at the heart of action to address the pension injustices they have faced for far too long.<\/p>\n
\u201cI urge the UK Government to listen to continued concerns and make the necessary changes to finally deliver real justice.<\/p>\n
\u201cFor former ASW workers, that means providing full pre- and post- 1997 indexation, and backdated.\u201d<\/p>\n
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