Part of the debate – in the Senedd at 4:22 pm on 23 January 2019.
Thank you. I'd like to thank all Members who have brought forward this important issue to the floor of the Assembly today, and for giving that opportunity to give voice to the concerns of ASW pensioners. I will say from the outset that ASW pensioners have been subject to what is a really grave injustice. People have worked hard, they've paid in, they've planned for their futures, they did the right thing, and, through no fault of their own, they've found that they are denied what they could just reasonably have expected.
Members will be aware, of course, as we've heard, that pension matters are not devolved to Wales, but, nonetheless, we support the former ASW employees in their campaign for pension reinstatement. The Welsh Government is pleased to vote in favour of this cross-party motion today and we hope that the Assembly will send a clear and unanimous message to the UK Government.
From the outset, the Welsh Government has been consistent in its support for ASW employees prior to and following the closure of the Cardiff works in 2002. Our support included extensive activity around the closure of ASW, with a strong personal involvement by the then First Minister, including the chairing of meetings with ASW's administrators and employee representatives, plus separate meetings with the independent trustees of the ASW pension schemes to discuss issues raised by members; practical support to ASW's administrators in seeking interested parties for the Cardiff works as a going concern, leading to the successful reopening of the works by Celsa in 2003; and Welsh Ministers making numerous representations to the UK Government on behalf of all ASW pension scheme members.
Welsh Ministers first wrote to the UK Government Ministers responsible for pension matters in August 2002 to highlight the circumstances of the former ASW employees and to ask that all avenues of potential support and assistance within the pensions and employment regime be fully explored. In June 2003, the Secretary of State for Work and Pensions announced a proposal for the pensions protection fund—the PPF, which we've heard of in this debate—to protect accrued pension rights for defined benefit schemes that began to wind up after April 2005. The Welsh Government subsequently pressed the UK Government to seriously consider retrospective arrangements to enable pension schemes like ASW's to be eligible for inclusion.
Working closely with the independent trustees of the ASW pension schemes and the democratically elected representatives of the former ASW workforce, the Welsh Government continued to support the case for the pension scheme members through correspondence and meetings with UK Government Ministers responsible for pension matters.
Welsh Ministers also met with former ASW employees to hear their concerns first hand. The Welsh Government welcomed the May 2004 announcement by the pensions Secretary of an amendment to the Pensions Bill to provide for the financial assistance scheme, the FAS. The FAS was intended to provide assistance to members of pension schemes where the employer became insolvent before the establishment of the PPF.
The Welsh Government also welcomed the inclusion of the ASW pension scheme into the FAS in October 2005. However, it became apparent that the financial assistance scheme would benefit only a very small percentage of ASW pension scheme members. At the time, the scheme was restricted to offering assistance to qualifying members within three years of their scheme's normal retirement age. They would receive top-ups to around 80 per cent of their expected pension, paid from the age of 65 regardless of scheme retirement age, and this was subject to a cap of £12,000. The Welsh Government pressed the UK Government for improvements to the FAS, including provision for those who were more than three years from retirement age, of which there were many within the ASW scheme.
There were also calls to reassess the level of funding for the FAS. Extensions to the financial assistance scheme were announced by the UK Government in 2006 and 2007. The most notable was the December 2007 announcement that all FAS members would receive 90 per cent of their accrued pension at the date of commencement of wind-up, subject to a cap, which at the time was £26,000, and, as of April 2018, is now £35,256. Assistance would also be paid from the scheme's normal retirement age, subject to a lower age limit of 60.
I think what all this shows is that sustained lobbying over the long term by ASW employees and others has led to incremental improvements, which is why we will not give up and we will not stop making the case. And I would like to recognise—.