Javid 'wary of precedent' amid Tata pensions consultation

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

The consultation, which will run until June 23, sets out a number of different options for the British Steel Pension Scheme and its 130,000 members.

The scheme includes 14,000 people currently employed by Tata or another employer, 32,000 are deferred (no longer employed by Tata but below the scheme's normal pension age) and 84,000 pensioners.

The Government has been warned against the impact of setting a precedent by seeking to change pension law.

"No decision (on Tata's future) has been made," Mr Javid told MPs. "We are very wary of setting a precedent ... this is very much about this scheme and this scheme only in these very unique circumstances."

Shadow business secretary Angela Eagle warned against cutting the fund's long-term liabilities by benchmarking it to the consumer price index (CPI) rather than the higher retail price index (RPI), saying: "This change is currently illegal."

• Joel Hills: Why is the government exploring an exception for Tata but not BHS?