Government going down a ‘dangerous path’ over cuts to Tata pensions

Written by John Ashmore on 26 May 2016 in News

Former pensions minister Tom Blenkinsop has warned that rushed changes to Tata steel pension could impact on other industries

Labour MP Tom Blenkinsop claims it’s in the industry’s interest to slow down the process of selling Tata Steel.

The former pensions minister warned that UK Government plans to reduce pension benefits for steelworkers risks going down a "dangerous path".

Tata Steel scheme's £485m deficit is one factor deterring potential buyers of its UK operations and ministers are looking at options to reduce the liability. 


RELATED CONTENT

David Cameron to chair steel industry meeting at number 10

Sturgeon sets up steel task force


One proposal is to link increases in payouts to the Consumer Price Index (CPI) rather than the Retail Price Index (RPI), which is normally higher. 

But former minister Steve Webb warned against "rushed changes", which could have an impact on other industries.

"The government is going down a very dangerous path," he said.

"Everyone has huge sympathy for steel workers and for efforts to protect jobs, but rushed changes to pension rules risk driving a coach and horses through the pension security of hundreds of thousands of workers well beyond the steel industry."

The Government will announce details of its plans, which are likely to be backed by trade unions, in a written statement later today.

Shadow Work and Pensions Secretary Owen Smith called for a clear explanation of the plans. 

"If these reports are accurate, the secretary of state for work and pensions should come to the House to explain precisely what is being proposed, including how current and future steel pensioners will be affected and what precedents might be set by any changes to hard-won pension protection legislation," he added.

Tags

Categories

Related Articles

Ruth Davidson backs 'Amazon tax' to help support high street shops
14 August 2018

Scottish Tory leader warned the high street could “vanish” if the UK Government failed to increase taxation on online firms

Promote the aquaculture industry to school leavers and graduates, urges HIE
23 May 2018

Highlands and Islands Enterprise highlights a gender imbalance in both the industry and education system, as well as an ageing workforce

Employment in Scotland at record high
22 May 2018

Statistics show that in 2017, 2,618,100 people were in employment, with the employment rate at 74.3 per cent

EXCLUSIVE: RBS looks to EU banking licenses amid Brexit uncertainty
18 January 2017

RBS Scotland board chairman says its European banking licenses could afford the bank some flexibility after Brexit

Related Sponsored Articles

Share this page