MP raises plight of ASW pensioners in the Commons

Martin Shipton

Plaid Cymru MP Ann Davies has again raised in the House of Commons the plight of former Allied Steel and Wire workers who have been campaigning for pension justice for 23 years.

When the Cardiff steel firm 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.

Now the UK Government has said that those elements of their pension that were not index linked will in future accrue increases up to a maximum of 2.5% per year.

But Ms Davies, the MP for Caerfyeddin,said that wasn’t enough.

She outlined her amendments to extend inflation protection and provide backdated payments. After the Pensions Minister – Swansea West MP Torsten Bell – rejected the original amendments, she introduced a revised clause requiring the Government to create regulations to deliver this protection.

She welcomed recent Government action but argued it is too limited because it caps increases and only applies to certain schemes. She called for broader changes to ensure full indexation and backdated compensation for all affected pensioners, including former ASW workers.

Coal mining 

In her speech, Ms Davies said: “The coal mining legacy of south Wales extends to my constituency of Caerfyrddin, with the Amman and Gwendraeth valleys bearing the scars of previous industry.

“It is then of no surprise that my constituents are among those whose funds have been withheld, causing immense hardship for these pensioners who paid into the system for decades.

“In fact, over 20 local residents came to my drop-in session earlier this year to share their stories of how this long-running issue affected their lives.

“When the honourable member for Aberdeen North [the SNP’s Kirsty Blackman] kindly raised this same amendment on my behalf at Committee stage, the Minister’s answer gave some hope of long-awaited action.

“I therefore welcome the recent confirmation that the UK Government has finally listened, and has implemented the transfer of the full £2.3bn reserve to trustees – and I pay tribute to the hard work of my constituents and to former mineworkers everywhere for their long-fought campaign to make this day a reality.

“Former Allied Steel and Wire workers have also campaigned tirelessly to receive their rightful dues in retirement.

“When the company went bust in 2002, former Allied Steel and Wire (ASW) employees lost their livelihoods and their pensions which they had worked hard for and relied upon for security later in life. “The Financial Assistance Scheme (FAS) and the Pension Protection Fund (PPF) were introduced to provide some relief to pensioners in such situations – but pension contributions made before April 1997 were not inflation proofed, leaving pensioners without the secure retirement they were promised.

“That’s why I put forward two amendments at Committee Stage to extend the indexation of compensation under the FAS and PPF to cover both pre-1997 and post-1997 service, and reimbursing members for the annual increases they should rightly have received.

“After the Minister for Pensions responded that the amendments could not work, I went back to the drawing board – you know we never give up in Wales, you see – and sought advice to address his concerns.

“New Clause 6 is the result of that advice – requiring the Secretary of State to make regulations to provide for that indexation.“Now, I welcome the recently announced action by the UK Government to finally start addressing this injustice.

“But limiting pre-1997 indexation to a 2.5% cap for those whose schemes originally offered it simply does not go far enough.

“I add that as of earlier this afternoon, I have not received an answer to my written question asking how many FAS and PPF members will not benefit from the government’s measure because of this caveat. I would welcome a response within the next few days.

“The UK Government should instead adopt my amendment – which provides no cap on inflation, includes reimbursements to make good losses, and specifies application to transferee members, ill health payments and to payments to surviving dependents.

“Affected pensioners must be at the heart of action to address the pension injustices they have faced for far too long.

“I urge the UK Government to listen to continued concerns and make the necessary changes to finally deliver real justice.

“For former ASW workers, that means providing full pre- and post- 1997 indexation, and backdated.”