UK government rejects pension make-up for steelworkers
UK government rejects pension make-up for steelworkers
Written by Rhodri Lewis
Political Correspondent for BBC Wales
The UK government's inaction, according to a veteran steelworker, after 1,000 people lost their pensions more than 20 years ago is shameful.
Employees at the Cardiff facility of Allied Steel and Wire (ASW) lost their pensions when the company failed in 2002.
Advocates succeeded in regaining 90% of their pensions; nevertheless, this benefit does not rise annually.
The minister for pensions claimed that determining what was owed would be extremely costly.
John Benson, however, said that the Department of Work and Pensions (DWP) was "trying to just cheat us out of what we paid for".
"The way they've handled us is a shame. They must acknowledge their obligations," he remarked.
We own this money, regardless of the cost. We trusted the government, and we paid for this pension and indexation.
"They waste billions on vanity projects then say they can't afford this."
Steelworkers compare the Horizon affair to pension loss.
Seniors 'cheated' even after winning the election
After ASW collapsed, people lost their jobs and the pensions they had been accumulating for decades, sparking a fight to recover the pensions.
Following several demonstrations, the UK government established a programme that guaranteed employees of companies like ASW would receive a reimbursement of up to 90% of their pensions.
However, because those pensions are not indexed to inflation, their value has decreased over time.
The employees claim they have a right to a backdated version of that sum that accounts for inflation.
After bringing the workers' cause before parliament, Plaid Cymru requested that the DWP evaluate how inflation has affected the value of pension payments that haven't been index linked for retirees of Allied Steel and Wire since 2007.
"Trampled by the state"
The party's employment and pensions spokesman, Hywel Williams MP, said that the impacted workers had "unjustly been denied their full pensions" for 22 years.
"Due to the UK government's scheme failing to protect contributions from inflation, workers say they are only receiving about half of what is owed to them," he added, calling the unwillingness to make up the gap "deeply disappointing" and calling the cost-blaming "in bad taste."
"They followed the rules, yet the government betrayed them still
"It is evident that the UK government is not taking the Horizon Post Office issue seriously and is still choosing to ignore injustice. I implore them to think twice."
The information needed to complete the evaluation, according to pensions minister Paul Maynard, was "not readily available" and "obtaining it would incur disproportionate costs."
"The department has therefore made no such assessment and does not intend to do so, at this time," said the official.
However, he added in a letter to Mr. Benson that BBC Wales was able to view: "I understand your frustration that the wheels move slowly... but I can assure you it is an issue which I am still very much working on."
Source bbc.com
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