Huhne welcomes victory for APW pensioners as ministers climb down over lifeboat

4.36.10pm UTC (GMT +0000) Thu 28th Sep 2006

Eastleigh MP Chris Huhne welcomed the Government's change of heart over whether to provide support for APW pensioners who had been threatened with losing nearly 80 per cent of their promised pensions.

Mr Huhne has been part of the all-party group of South Hampshire MPs including John Denham, Julian Lewis, Sandra Gidley and Alan Whitehead who have been fighting to include APW pensioners in the Government's Financial Assistance Scheme (FAS).

Until now, APW was excluded on a technicality but James Purnell, the minister of state for pensions reform, has written to Mr Huhne confirming that APW pensioners will now be covered by the FAS.

The practical consequence is that members who were within 7 years of scheme pension age on 14 May 2004 will now receive a top up to 80 per cent of their expected core pension. Others will receive less as they are further away from pension age.

"The hardest hit APW pensioners will now go from losing 80 per cent of their expected pension to losing 20 per cent" said Mr Huhne. "It is still far from ideal given the contributions that have been made, but it is a major step forward and a cause for celebration."

"This is a victory for the APW campaign and for the Echo which has been very supportive of our efforts to press the Government for a change. It goes to show that persistence pays, as there have been times when I really thought we were reaching a dead end" said Mr Huhne.

Mr Huhne, who represents the largest number of affected people as APW was based in his Eastleigh constituency, said that he is writing to those affected with the ministerial letter.

"The key change is that the Department now recognises that APW went into insolvency, whereas before it was claiming that it was a going concern and should therefore bear the costs of making up the pensions of employees" said Mr Huhne.

The trustees of the APW scheme have now applied for FAS help.

"I am very relieved as I have never come across such an appalling case where pensioners have lost so much through no fault of their own" said Mr Huhne. "In one case, an employee who moved a large pension pot from another company then lost almost all of it. The injustice of failing to cover the APW scheme was patent and obvious".