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Pensions Bill

It is a delight to follow the hon. Member for Cardiff, North (Julie Morgan), who echoed what had been said by the right hon. Member for Birkenhead (Mr. Field). We are no clearer about what the Government are proposing; it seems to be a bit more smoke and mirrors and a bit more jam tomorrow. There was some laughter earlier, but I do not think any of us can really imagine what it is like to lose a pension after 30 years of saving. Many of those involved in this scheme were ordinary hard-working people, who did not expect riches in later life but certainly expected to avoid the poverty trap into which many on state pensions had fallen. They are not feckless spendthrifts waiting to be bailed out. As the right hon. Member for Birkenhead said, many went without during their working lives for the sake of the contingency fund that they thought they were setting up, not just for themselves but for their wives and families. It was Government advice that those people were following. It is not as if they suddenly decided that some snake oil salesman had come up with a good idea; they were persuaded by the argument that this was the right thing to do. At £87.30, the state pension is hardly a king’s ransom. It is no wonder that many of our hard-working constituents hoped to avoid the possibility of not being able to lead the life that they were expecting, with happiness and a degree of comfort in their old age. My postbag, like that of others who are present, reflects the views of those who feel that they have been sadly deceived and face an impoverished old age. We must step in tonight, rather than delaying for the sake of the promise of some future benefit that is undefined. When my right hon. Friend the Member for Wokingham (Mr. Redwood) pressed the Minister for figures, he made some party political points that I think did a disservice to the House and to our current argument, but we were given no firm figures. We may not have a perfect system to propose, but at least we are offering a degree of security that was not forthcoming from the Government. I believe that, as Members of Parliament, we are considered to be honourable, and that is a badge that we all like to wear. But my constituents who have been caught up in the Dexion pension crash may be watching the debate today, perhaps from somewhere closer than some of us may care to think, and they will draw their own conclusions if we do not seize the chance to right what Members on both sides of the House acknowledge to be a terrible wrong. This is not cheap party political posturing because some by-election is taking place somewhere; we are dealing with a long-standing complaint, recognised by Committees that were heavily Labour-dominated. I firmly reject the idea that what is being said tonight is intended merely to win a by-election. As we have heard, the collapse of the Dexion pension scheme is not an isolated case, but it is a salutary tale which, like others, has prompted calls for action by Government. In 2006, a Select Committee said that the Government were focusing their energy on the findings of maladministration rather than considering the remedies. We have a remedy tonight. The fact that the Government were not considering the remedies was seen to add to the distress of the people caught up in this mess—for it is a mess. A constituent of mine, Mr. Mike Chapman, is a former Dexion employee, and he and his family believe that the Government are dragging their heels. Although we have heard of similar cases tonight, Mike’s case typifies the enormity of the personal crisis that faces people. In May 2003, 180 Dexion staff were caught up in that crisis. There should not have been a problem. Those people thought that they were in a secure pension scheme. In fact, their contract insisted that they join a pension scheme. Mike was in the scheme, and having paid the additional voluntary contributions for more than 20 years, he rightly expected a relatively comfortable old age for himself and his family. But, as we have heard, the Dexion pension fund, like others, did not have enough money in the pot to meet the obligations. What is more, work forces and their pension funds are near the bottom of the pecking order when a failed company’s creditors are ranked. A valuation of the Dexion pension fund showed a £20 million shortfall, which was disastrous for the employees. At 64, my constituent Mike Chapman was within a fortnight of retirement. Can Members imagine that being snatched away from them within a fortnight of retirement? When Dexion—a firm that manufactured shelving—went into administration, it left a gaping hole in its pension scheme. Mike Chapman tells me that rather than gaining a pension of more than £1,200 a month, he and others like him will receive nothing. He is too young to qualify for the financial assistance scheme. In the four years since Dexion’s collapse, Mike and his wife Valerie have lived on their savings. They had saved, fortunately: like many others involved in pension schemes, they are a prudent couple. They have had to try to make ends meet by working in odd jobs. They have even worked as medical research guinea pigs to generate some income. Earlier today we talked of equality for women, but I can tell Members that for an older person, seeking employment to supplement one’s income is not an easy option. It is not open to many people to seek gainful employment. Being a sensible man, Mike had followed the Government’s advice to the letter, and he has paid the price for doing so. As we have heard today, people were positively encouraged to act as he did. Mike paid in thousands of pounds of his own money because the Government and his employers told him to do so. He was promised that he would be safe and would receive a generous settlement, but that did not happen. Shockingly, Mike and others discovered the hard way that final salary schemes were not worth the paper they were written on; they were only as good as the employers running them. I want to quote Mike’s words, and those of others caught up in the scheme. I think that Labour Members who do not share our passionate feelings—[Interruption.] I refer to some Labour Members. Many have expressed the same wishes as us today, but unfortunately those on the Front Bench have not done the same. [Interruption.] I am sure that Labour Members want to hear Mike’s words rather than shouting them down. He said:"““We had saved to pay for the good things in retirement, expecting the pension to take care of the day to day expenses. But life after 60 has been very different to how we imagined it.""After four years of fighting, I won't believe anything until I see the money in my pocket. We're planning on the basis of assuming the worst because we cannot afford to be disappointed.””" The wife of a Dexion victim said:"““I would love to be able to ask Mr. Blair””" —this was before the arrival of our new Prime Minister—"““and those in Government what on earth they think we should do now””" —not next year, but now—"““but of course it is not possible to talk with such lofty folk, I can not even get him to read the letters I send.””" Tonight the Government have a chance to listen to that lady, and to other people such as Mike. Mike is a former marketing manager. He lives in St Albans. He does not expect a quick U-turn, but Members can support him tonight. Following articles in the media about the plight of Mike and other Dexion workers, they posted their comments on a website. Many drew attention to the moral dimension of the Government’s apparent contempt for the public—that is how the Government are regarded: with contempt. They feel that they have been let down, and they speak eloquently of their experiences. I shall end by quoting comments that reflect the views of the many despairing victims from whom I am sure we have all heard at our constituency surgeries. This is what they tell us:"““Frankly the young might be better off spending their money having a good time while they are young rather than save for a Pension which might be taken away from them. At least they could have some happy memories while sitting huddled over a candle keeping warm””.""““The government do not care about those of us that stand to lose all or part of our pensions because of government mismanagement and misinformation. And this from a so-called Labour Government. But never mind, the MPs can all rest easy that their pensions are safe.””""““Many here””" —on the website, that is—"““have pointed out the moral dimension of the Government's contempt for the public, and failure to help people who are genuinely in need. The attitude of Blair and Brown, however, is rooted in mismanagement and incompetence.””" Those are not my words, but the words of people who have nothing as a result of the Government’s actions. They accuse all of us collectively—all hon. Members—of letting them down. Tonight we have a chance to show them that their comments may be misplaced, and that we can redress what has been done. Some Members have seemed to wish to shout all that down, and not to wish to speak to the likes of Mike Chapman. I am the voice of those people tonight. I hope that other Members will join us in the Lobbies, and ensure that we provide at least a degree of financial security for an old age to which people thought they were entitled and to which I believe they have a right.