Eluned Morgan backs steel pension campaigners who say they have been betrayed by UK Labour

Martin Shipton

First Minister Eluned Morgan has renewed her support for former steelworkers who feel betrayed by the UK Government over what they see as a longstanding pension injustice.

When Cardiff-based Allied Steel and Wire (ASW) crashed in 2002, its employees lost the pensions they had been paying into for years.

Schemes were later set up that paid them some compensation, but contributions made pre-1997 were not index linked.

In last November’s Budget, Chancellor Rachel Reeves said those elements of their pension that were not index-linked would in future accrue increases up to a maximum of 2.5% per year.

But this latest concession is seen as wholly inadequate by the ASW campaigners.

John Benson, one of the leaders of the campaign, wrote a furious and passionate letter to Welsh Labour MPs and MSs in which he denounced the Labour government at Westminster for reneging on previous promises.

In his letter, Mr Benson stated: “In the Budget the Chancellor acknowledged the appalling pensions miscarriage of justice inflicted on workers now pensioners in the Financial Assistance Scheme. This Scheme was formed as a result of Gordon Brown’s unfair tax on occupational pension schemes, robbing these schemes of up to £10bn a year, final total £238bn, not a bad sum of money to fill the coffers of the Treasury.

“Gordon Brown and the Labour government at that time gave no thought for the heartache and misery these workers would face in old age. He. Blair and the rest of them were not going to rob the living daylights out of politicians, or public sector pensions, and we know the cost to the taxpayers regarding these gold plated pensions is multi trillions of pounds. “Just like the Chancellor did with her first policy announcement: rob pensioners of their Winter Fuel Allowance. Who cares if they have to go cold or are unable to feed themselves through the winter?

“This arrogant Chancellor and her equally as arrogant sidekick the current Pensions Minister [Swansea West MP Torsten Bell], are saying that paying 2.5% pre-1997 indexation to those whose companies paid for indexation was the right balance to the taxpayers. What a load of rubbish – what about the balance to the taxpayers with politicians’ gold plated pensions, and the trillions of pounds to public sector pensions, which we who have been robbed of our promised pensions must pay out of our taxes to make sure these politicians and all those public departments’ employees enjoy a retirement of wealth and security. The double standards beggars belief. Shame on you Rachel Reeves and Torsten Bell.

“That 2.5% pre 1997 indexation announcement in the Budget is an insult to the 23-year campaign led by the former workers at ASW Cardiff, workers who walked the streets of Cardiff, London, party conferences, handed in countless petitions and letters to 10 Downing St and Cardiff Bay, Brussels, and held up their famous ASW banner at the entrance to the European Court of Justice in Luxembourg. We met countless ministers, MPs, Welsh Assembly and Senedd Members and have seen first hand men, women and their families whose lives were destroyed forever for just playing by the rules they were told to play by.

“All we have seen from Labour since attaining power on July 4 2024 is dishonesty and spin – a bloody disgrace. So much for the party of strivers and working people.

“I can tell you lot, including the arrogant Chancellor and her sidekick Pensions Minister – we were strivers, we like others in the steel Industry worked bloody damn hard, knowing that when we retired, we and our families would have a comfortable and secure old age. Labour robbed us of that dream, and like Gordon Brown and the current arrogant Chancellor and her sidekick Pensions Minister, both are proud in denying these decent men and women what they paid for and rightfully deserve: their pensions in full, which must include their schemes’ full pre and post 1997 indexation. ASW Cardiff was 5% pre and post 1997 indexation, plus all areas owed should be fully paid to the day these pensions were due to be paid, not that bloody insulting 2.5% pre-1997 indexation, starting January 2027.”

‘Injustice’

In her response to Mr Benson, Eluned Morgan said: “Dear John, I wanted to write to let you know the Welsh Government continues to press the UK Government to take action to end the pension injustice faced by you and former ASW workers.

“Finance Secretary Mark Drakeford wrote to Pensions Minister Torsten Bell following the UK Budget in November, urging the UK Government to address the longstanding ASW pension issue.

“We will use all opportunities in our interactions with the UK Government to push for action to right this wrong.”