Investment Income: Coronavirus

Treasury written question – answered on 16th October 2020.

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Photo of Matthew Offord Matthew Offord Conservative, Hendon

To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect on pension companies of the decision by some UK listed companies to cancel dividend payments to their shareholders.

Photo of John Glen John Glen Minister of State (Treasury) (City), The Economic Secretary to the Treasury

Whilst dividend income is important for pension schemes, they have long-term investment horizons and a range of other sources including fixed income from corporate and sovereign bonds, rental income and capital gains, although many of these are under strain.

When market conditions recover and firms have rebuilt their balance sheets we anticipate that dividends will be restored.

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