Pensions win for thousands of members after years-long Prospect campaign

The Pension Protection Fund (PPF) has begun to contact more than 330,000 of its members, which includes thousands of Prospect members, to tell them the good news that they will start to receive inflation increases relating to pensionable service before 6 April 1997.

Previously, compensation in relation to this service was frozen, which significantly reduced its value over time. The Pension Schemes Act 2026 included a provision that allows the PPF Board to pay inflation increases of up to 2.5 per cent per year.

This will benefit thousands of Prospect members who built up service in pension schemes that subsequently transferred to the PPF after their employer became insolvent (such as AEA Technology, ADAS and Carillion).

Prospect has campaigned for this improvement to compensation levels for many years. This included taking legal advice about potential challenges to the previous rules and giving written and oral evidence about this issue to Parliamentary select committees.

Steve Thomas, Prospect Deputy General Secretary, said:

“It is great to see the years of campaigning from Prospect and other organisations finally pay off. Thousands of our members will see a bigger increase in their income in January 2027, and every year afterwards, as a direct result.

“However, this increase only applies prospectively. It does not address the cumulative impact of freezing this compensation since the PPF was established. The PPF has sufficient funds to recognise past losses, and Prospect will keep campaigning for this.”