Clive Jones

I absolutely agree with my hon. Friend. There needs to be some sort of plan, and sooner rather than later. The Government appear to recognise the injustice and are proposing to use surplus funds in the PPF to provide inflation increases on some pre-1997 pensions. Why are we not seeking to resolve the same issue for company defined-benefit pension schemes? Many of these pension schemes have a funding surplus but choose not to use it to support their former employees, despite often being asked to do so by trustees who are ignored by foreign-based employers. Surely that cannot be right. Research by the Pensions Regulator has revealed that even among schemes whose rules allow for discretionary benefits, less than a third had provided those benefits in the previous three years. Employer discretion has failed in practice and will continue to fail unless Parliament acts. The Pension Schemes Bill fails to address this issue. Only by amending the original legislation can we ensure fairness for those with pre-1997 service. The Society of Pension Professionals argues that legislation on pre-1997 benefits is unnecessary, but the evidence is clear: discretion, more often than not, is exercised to the detriment of pensioners. As I have said, trustees lack the authority to act and pensioners are left behind. The problem appears to be concentrated in a small number of large companies. They were meant to provide long-term financial security for their employees. We must remember that all defined-benefit schemes paid levies into the PPF, creating a surplus that now funds indexation. If pensioners in the PPF deserve protection, so do those in live schemes who helped build the surplus in those schemes. The Government have taken the first step by restoring indexation for some. They must now take the logical next step by extending inflation protection to all pre-1997 pensioners in live schemes. I believe that pre-1997 pension service should receive inflation protection on the same statutory basis as post-1997 service. This is about fairness, dignity and justice for those who worked hard, paid into schemes, were made promises, and now deserve security in retirement. Pensioners affected by this injustice live in every constituency, and they deserve the support of this House of Commons and the Government. Our constituents affected by these injustices simply ask for fairness, and hopefully the Minister will make sure that it happens soon.