Mike Penning welcomes the Parliamentary Ombudsman’s report into the Dexion pensions scandal, but says the Government’s refusal to comply with it is not only a local issue, but is a national disgrace.

Mike Penning, MP for Hemel Hempstead, today reacted angrily to news that the Government will not accept the ruling of the Parliamentary Ombudsman. The Parliamentary Ombudsman, Ann Abrahams, has been conducting an inquiry into the official information leaflets and guidance issued from Government bodies such as the Department of Work and Pensions. Pension scheme members, including members of the Dexion scheme, had been misled by this information into believing that their pensions were secure, even in the event of their pension scheme being wound up.

On concluding the investigation, the Ombudsman agreed with the complainants and she has criticised the Government for giving inaccurate, incomplete, unclear and inconsistent advice in relation to the security of people’s pension schemes. The key point is that the leaflets falsely gave the impression that if a pension scheme were funded to meet the Minimum Funding Requirement (MFR) then pensions would be secure.

Mike Penning said:
”Time and time again, honest people such as the former Dexion workers are being trampled on. These hard-working people had done the decent thing and invested for their future in the company pension scheme. They believed their future was secure – the Government had told them their future was secure. Now these same people are facing poverty and hardship.”

He continued:
“I am appalled at the treatment the Dexion workers are getting from this Government. The whole pensions fiasco is a national disgrace. It is no wonder that fewer and fewer people are trusting pension schemes to provide for them in retirement.”