Advertisement

  1. National

Tata Steel: Pension cut plan would be 'unique' to company

Business Secretary Sajid Javid has confirmed the Government is set to launch a consultation on changes to pensions law as part of efforts to save Tata Steel despite being "very wary of setting a precedent".

The changes would leave steelworkers worse off in retirement - but they would still fare better than many employees in other pension schemes.

Former Liberal Democrat Pensions Minister Steve Webb warned the government is "going down a very dangerous path" in seeking to change the pension laws but Mr Javid said the plan for Tata would be 'unique' to the company.

View all 10 updates ›

Government urged to protect steelworkers' pensions

Steelworkers' pensions must be protected in any plan to save Tata Steel's UK operation, Labour has said.

ITV News understands ministers are exploring ways of reducing the firm's UK pension burden in a bid to attract buyers.

Reacting to the reports, Owen Smith, Labour's shadow work and pensions secretary, said:

Dealing with the Tata pension scheme must be a central part of any Government package to save our steel industry, so it will be totally inappropriate for Ministers to rush out this vital announcement, in a written statement without any scrutiny on the final day before a recess.

Steel workers’ pensions must be protected, they’ve earned them with hard graft over many years.

So if Ministers are considering measures which might see those pensions reduced, MPs from all parties, especially those representing steel communities, will want a chance to question the plans, along with the trade unions who are playing such a vital and impressive role standing up for Tata workers.

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.

– Owen Smith MP
  1. Read more
  2. 10 updates
Tata Steel: Pension cut plan would be 'unique' to company

More on this story