Government faces pensions inquiry

The parliamentary ombudsman is independent of the government

BBC Radio 4's Money Box was broadcast on Saturday, 20 November, 2004 at 1204 GMT.

The programme was repeated on Sunday, 21 November, at 2102 GMT.

Read the programme transcript

The government's role in occupational pension losses is to be investigated by Parliamentary Ombudsman Ann Abraham.

The long-awaited announcement was made on Tuesday and brings hope to the 65,000 or so workers who have lost all or some of their pensions when their firms went bust or their schemes were wound up.

In complaints to the ombudsman, several key government departments have been accused of maladministration, including the Department for Work and Pensions and the Treasury.

The principle allegation is that successive governments misled people into believing their pensions were safe when they were not.

If the government is found guilty, it could face a bill of billions of pounds, which would be used to compensate those who have lost out.

Alan Marnes paid more than £36,000 into his scheme during his working life but now he will get no pension at all. He told Money box why he complained to the ombudsman.

And just this week, three thousand more workers - from electronics company APW and bus and coach maker Henly's - learned the pensions they had been promised will not be paid.

Melvin Trotter from Henly's described the effect this has had on affected workers.

And pensions consultant Ros Altmann - who submitted detailed evidence of maladministration to the ombudsman for consideration - gave Paul Lewis her reaction to the news.

---

Click here for all other items on this programme

Producer: Chris A'Court
Presenter: Paul Lewis
Reporter: Louise Greenwood
Web Producer: Nathalie Knowles