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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.

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Tata Steel: Government 'going down dangerous path'

Tata steel plant in Port Talbot, Wales. Credit: PA Wire

The government is "going down a very dangerous path" in seeking to change pension laws to save Tata Steel's UK operation, an ex-Liberal Democrat pensions minister has said.

Steve Webb said any changes could affect the pension security of "hundreds of thousands of workers, well beyond the steel industry".

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 rules to protect pensions have been carefully worked out over many years.

Rushed legislation could open the floodgates to employers who may wish to walk away from their pension schemes rather than honour their pension promises.

The Government must tread very carefully in this area.

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

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