Pensions Bill threatens ‘protected persons’

Prospect has raised concerns about the potential impact of the Pensions Bill on members in the electricity and nuclear industries who have ‘protected persons’ status.

Prospect has raised concerns about the potential impact of the Pensions Bill on members in the electricity and nuclear industries who have ‘protected persons’ status.

The bill, which is enacting significant changes to state pensions, continues to make progress in Parliament.

It will introduce a new, single-tier level of state pension of about £144 per week, and measures to bring forward future increases in State Pension Age.

Prospect has warned that the complex reforms hide the fact that the new arrangements will significantly reduce expenditure on state pensions, and result in more losers than winners.

Of particular concern for workers in energy and nuclear is the possibility of the bill allowing employers to have a limited override to the statutory pension protections that many of them enjoy.

Pensions officer Neil Walsh warned: “Undermining the regulations could have significant implications for skills capacity in the industry. A potential exodus of ‘protected persons’ from the industry would be extremely counter-productive as the industry is already facing a significant skills gap.”

The protected persons regulations were put in place at the time of electricity privatisation, to prevent private sector employers reducing provision in response to rising costs.

Prospect will continue to lobby as the bill completes report stage and third reading in the Commons before going on to the House of Lords.

* Submission on bill: http://library.prospect.org.uk/id/2013/01002

* Submission on Protected Persons: http://library.prospect.org.uk/id/2013/00374