Financial Assistance Scheme

Part of Oral Answers to Questions — Work and Pensions – in the House of Commons at 2:30 pm on 29 June 2009.

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Photo of Steve Webb Steve Webb Shadow Secretary of State for Work and Pensions 2:30, 29 June 2009

May I congratulate the Minister and the Secretary of State on their new appointments? Does the Minister not accept that the FAS pensioners feel like the poor relations because they are told there is not the money to give them full compensation, when there was money, for example, when building societies were bailed out to put 100 per cent. of the shortfall of those pension funds in at the time? So this is clearly a matter of priorities. Does she also accept that this 90 per cent. figure that she uses is highly misleading—I am sure not deliberately so—because it is not just capped, but there are big issues about the inflation protection? Does she accept that many pensioners will get much less than 90 per cent., and that over the years they will see annual falls in their real pensions? Will she look at those cases again?

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