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Court battle over lost pensions Court battle over lost pensions
(about 13 hours later)
Four people who have lost their pensions are to take the government to the High Court on Wednesday. Four people who have lost their pensions are due to take the government to the High Court.
They are trying to get the government to compensate people who lost pensions when their workplace schemes wound-up.They are trying to get the government to compensate people who lost pensions when their workplace schemes wound-up.
In a report last March, the Parliamentary Ombudsman criticised the government over its handling of the workplace pension system.In a report last March, the Parliamentary Ombudsman criticised the government over its handling of the workplace pension system.
If the plaintiffs lose their case they could face having to pay government costs, estimated at £125,000. If the court rules in favour of the four, the government could have to pay out hundreds of millions of pounds.
If the four lose their case they could face having to pay government costs, estimated at £125,000.
The judicial review is expected to last two days and it is likely that judgement in the case will be held over to a later date.The judicial review is expected to last two days and it is likely that judgement in the case will be held over to a later date.
Ombudsman reportOmbudsman report
The plaintiffs want the court to decide whether the government was right to disregard the findings of the Parliamentary Ombudsman's report. The pensioners want the court to decide whether the government was right to disregard the findings of the Parliamentary Ombudsman's report.
In essence, the Ombudsman called on the government to compensate people who had lost their pensions when their schemes went bust.In essence, the Ombudsman called on the government to compensate people who had lost their pensions when their schemes went bust.
An estimated 80,000 workers have lost all or part of their pensions when their schemes collapsed. An estimated 80,000 workers lost all or part of their pensions when their schemes collapsed.
This occurred when there was not enough money in the schemes to pay members their benefits. This happened when there was not enough money in the schemes to pay members their benefits.
The Ombudsman concluded that government's pension advice was "sometimes inaccurate, often incomplete, largely inconsistent and therefore potentially misleading".The Ombudsman concluded that government's pension advice was "sometimes inaccurate, often incomplete, largely inconsistent and therefore potentially misleading".
The department was asked to waive the right to seek costs in advance - it is our long established practice not to do this, Department for Work and Pensions spokesmanThe department was asked to waive the right to seek costs in advance - it is our long established practice not to do this, Department for Work and Pensions spokesman
On the eve of the case being heard, the government has been criticised for refusing to say whether it will pursue the plaintiffs for costs should they win. On the eve of the case being heard, the government was criticised for refusing to say whether it will pursue the plaintiffs for costs should they win.
Three of the four plaintiffs could be left with a massive legal bill if they lose. Three of the four could be left with a massive legal bill if they lose.
One of the plaintiffs is on legal aid, so will not be hit with case costs. One is on legal aid, so will not be hit with case costs.
"It is very worrying. If we lose, we would have to look at the assets we have, in my case that is my home," said Tom Waugh, a plaintiff who lost two-thirds of his pension when his workplace scheme went bust. "It is very worrying. If we lose, we would have to look at the assets we have, in my case that is my home," said Tom Waugh, who lost two-thirds of his pension when his workplace scheme went bust.
Mr Waugh and his fellow plaintiffs want the government to agree to waive costs.Mr Waugh and his fellow plaintiffs want the government to agree to waive costs.
"The department was asked to waive the right to seek costs in advance - it is our long established practice not to do this," a Department for Work and Pensions spokesman said."The department was asked to waive the right to seek costs in advance - it is our long established practice not to do this," a Department for Work and Pensions spokesman said.
"We do not wish to make an open-ended commitment on taxpayers' money at this stage. We will, of course, consider our position at the end of proceedings," he added."We do not wish to make an open-ended commitment on taxpayers' money at this stage. We will, of course, consider our position at the end of proceedings," he added.