Pensions

Answer: We have made significant provision, and tried to estimate the costs as best we can. Obviously we will have to keep the costs under review, and see what happens in practice. However, I believe that we have made prudent and adequate provision for the losses that those who are closest to retirement have sustained.

This is an answer to the Oral question asked on Monday, 5 February 2007 by Lord Hammond of Runnymede (Conservative).

Question: The Secretary of State talks about the financial assistance scheme as though it had a fixed cost; he said that the Government were finding £2.5 billion. Will he confirm, however, that the Government’s commitment under that scheme is in fact to pay, without limit, top-ups to a defined benefit level, and that as yet, they know neither the total value of the assets nor the liabilities of the schemes? Does he therefore acknowledge that the total cost could be much higher—or, indeed, much lower—than the figure that he has cited?

Secondary information

Type: Oral answer to question
Reference: 456 c555
Session: 2006-07
Chamber / Committee: House of Commons chamber
Subjects: EU law Insolvency Financial assistance scheme Workplace pensions Pensions Pension Protection Fund European Court of Justice
Link: View this Oral answer to question on www.publications.parliament.uk