Baroness Sherlock (Lab)

My Lords, I am grateful to all noble Lords who have spoken and thank the noble Baroness, Lady Altmann, for introducing her amendments. I understand her concerns. We did discuss this in Committee at some length. Amendments 124, 128, 132 and 136 would require the payment of arrears to members of the PPF whose original scheme provided for increases on pensions built up before 6 April 1997. The amendments would also enable members to receive a one-off lump sum payment from the PPF reserve. Amendment 154 would require the Secretary of State to determine how these lump sum payments are to be funded in the financial assistance scheme. I fully understand that many affected PPF and FAS members are having to adjust to a level of income less than they were expecting at retirement, after their employers became insolvent and the pension schemes wound up being underfunded. I understand the distress that has caused to many of them. Regarding the comments made by my noble friend Lord Hain and the noble Lord, Lord Wigley, about Allied Steel and Wire, my honourable friend the Minister for Pensions has met with a range of members, including former Allied Steel and Wire workers whose scheme qualified for the financial assistance scheme, and he has heard their cases. These amendments go much wider than that. This Government have acted to address this issue through measures in the Bill which address prospective pre-1997 indexation to eligible PPF and FAS members. However, I understand that this does not go as far as some affected members and some Members of the House would have wanted. None the less, these reforms represent a step change that will significantly strengthen the protection offered by the two compensation schemes. We have taken action and now want to implement it.