South Wales Central MS Andrew RT Davies has backed calls for former steelworkers at Allied Steel and Wire in Cardiff, who lost their pensions when the plant went bust, to be compensated in full.
The workers, who include Mr Davies’ constituent John Benson from Dinas Powys, received 90% of their pensions through the government’s Financial Assistance Scheme.
However, these are not linked to inflation, and so have eroded considerably over time.
The Pension Protection Fund, which replaced the Financial Assistance Scheme, currently has a surplus of £13billion.
Mr Davies backed calls from steelworkers for this to be used to make up the shortfall and pay their pensions in full.
He has signed a cross-party letter to the UK Government urging them to correct what he said is an “historic injustice”.
Mr Davies said:
“This is a historic injustice that I’ve long called to be corrected.
“ASW workers, like my constituent John Benson, lost their pensions through no fault of their own.
“They now receive a fraction of what they are owed.
“While I appreciate there are difficult decisions to be made, ASW steelworkers are right to point out the Pension Protection Fund has a £13billion surplus.
“The government must do the right thing and pay them their pensions in full.”
ENDS
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