Tory MS urges Burnham to settle steelworkers’ pension scandal

Martin Shipton

A Conservative MS has written to Prime Minister Andy Burnham, urging him to intervene in a scandal that has seen former Welsh steelworkers robbed of the full value of their pensions.

In his letter, Fflint Wrecsam MS Sam Rowlands stated: “I am writing to you regarding the ongoing injustice faced by former workers at Allied Steel and Wire (ASW). I am aware that my colleague in the Senedd, Darren Millar MS, recently wrote to you regarding this issue and is yet to receive a reply.

“Following the collapse of Allied Steel and Wire in 2002, former workers were given assurances that their pensions were protected by the law. Yet, over two decades later, these guarantees have proven to be worthless, and pensioners have received neither the money they were promised nor any compensation.

“While I appreciate that some action has been taken by the UK Government, namely the indexation of pre-1997 pensions, former workers will know that this is not enough.”

Mr Rowlands said the increases would not account for the significant decline in the pensions’ real value over the intervening years and would be linked to inflation but capped at 2.5%.

He continued: “While miners have received £2.3bn to right a historical wrong with their pensions, action for former workers at ASW is lacklustre. These individuals were encouraged to invest in their pensions while still in work, and have spent over two decades since retirement campaigning to receive what they were promised.

“Prime Minister, the former workers of Allied Steel and Wire are being let down by the ongoing failure of your Government to address this injustice. It is deeply distressing that some former workers have passed away before robust action has been taken.”

Earlier, ASW campaigner John Benson, from Cardiff, received a letter from Secretary of State for Wales Stephen Kinnock, in which he defended the changes without offering any further concessions.

Mr Kinnock wrote: “I recognise the strength of feeling among former ASW workers and understand why many members continue to feel deeply aggrieved about the losses they experienced following the failure of their pension scheme. I am also conscious that this has been a long-running issue and that many former members have campaigned for many years to secure what they regard as a fair outcome.

“The Government has listened to concerns raised by ASW pensioners and other members of the Financial Assistance Scheme (FAS), including concerns about the lack of increases on pension rights accrued before 6 April 1997. As a result, the Pension Schemes Act 2026 introduces inflation-linked increases on these elements of FAS payments where the original scheme rules provided for such increases.

“These changes will benefit former ASW workers and represent the most significant improvement to the scheme for many years. We expect the new arrangements to come into force in time for the first increases to be paid from January 2027. The increases will be linked to CPI, subject to an annual cap of 2.5 per cent, and will apply to future payments.

“While the Financial Assistance Scheme was not designed to provide full restoration of all lost scheme benefits, these reforms provide meaningful additional support to affected members while balancing wider responsibilities to taxpayers and the public finances.

“I appreciate that many former ASW workers remain disappointed that the changes do not go further. However, the concerns of former ASW workers have been heard, and these reforms were introduced in recognition of the genuine impact this issue has had on pensioners and their families.”

Mr Benson said the ASW workers’ campaign for justice would continue.

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