Pension scheme lifeline 'peanuts'

A MUCH-heralded pensions lifeline for people whose companies went bust amounts to just 'peanuts', a leading union warned today.

The Government recently set aside £400m to help support people who lost their pensions when their firms went bankrupt.

But the £400m over 20 years has to be spread over some 60,000 people who lost their retirement savings when their companies went under, the Transport and General Workers Union claims.

This amounts to just 96p a day for each of the workers involved – or £340 a year for 20 years.

T&G general secretary Tony Woodley said: 'Either the money is not enough and most people will get peanuts, or the criteria are so narrow that only a handful of the 60,000 will qualify for compensation.

'We will be speaking to ministers to ensure that more money is injected into the fund so that everyone who has been cheated out of their pension will be compensated.'

The Government admitted recently that not everyone who lost their pensions will be helped by the new scheme.

Woodley urged people who wanted pension justice to join the TUC's national march on 19 June.

He said: 'The pensions robbery is one of the greatest scandals of our time and affects thousands of our members. We will continue to fight for a decent pension for all and I urge those who want justice for pensions now and in the future to make their voice heard on the streets of London on Saturday.'

A Department of Work and Pensions spokeswoman denied the T&G's claims, however, insisting that the money set aside by the Government would be a 'real help' to workers whose pension schemes had been emptied of cash. And she skirted over recent acknowledgements from the Government that many people will not be covered by the scheme.

The spokeswoman added: 'We believe the £400m will give significant assistance. We are working on the details and we will be publishing figures on the number of people affected by the end of June. We are working in consultation with partners in the industry over the scope of the package.'