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| Version 3 | Version 4 |
|---|---|
| High Court victory for pensioners | High Court victory for pensioners |
| (20 minutes later) | |
| Four people who lost all or part of their company pensions have won their High Court case against the government. | Four people who lost all or part of their company pensions have won their High Court case against the government. |
| The Court ruled that the government was wrong to reject the Parliamentary Ombudsman's report into collapsed pension schemes. | The Court ruled that the government was wrong to reject the Parliamentary Ombudsman's report into collapsed pension schemes. |
| The Ombudsman, Ann Abraham, said last year that the government was guilty of maladministration. | The Ombudsman, Ann Abraham, said last year that the government was guilty of maladministration. |
| The Court decision does not mean that the government must compensate an estimated 85,000 people for their loss. | The Court decision does not mean that the government must compensate an estimated 85,000 people for their loss. |
| However, the ruling will intensify pressure on the government over the compensation issue. | However, the ruling will intensify pressure on the government over the compensation issue. |
| Think again | |
| The case affects 85,000 people who lost their pensions when the firms they worked for went bust between 1997 and 2005. | |
| Many of these people face an impoverished old age. | |
| THE LOST PENSIONS 85,000 people were affected 400 schemes closed with deficitsThey were shut between 1997 and 2005Only limited compensation is available from the Financial Assistance SchemeThe Pension Protection Fund only covers schemes from April 2005 class="" href="/1/hi/business/6381945.stm">Why we went to High Court | |
| Mr Justice Bean ruled that Pensions Minister John Hutton had no right to reject the Parliamentary Ombudsman's report. | |
| The ruling means that the government will now have to think again about whether to compensate the people who have lost their pensions from public funds. | |
| The court case was brought by four people who had lost their pensions - Bob Duncan from Jarrow, Andrew Parr from Kent, Henry Bradley from Belfast and Tom Waugh from Staffordshire. | |
| Ombudsman's report | Ombudsman's report |
| The judicial review was an attempt to compel the government to abide by the Ombudsman's rulings. | |
| Ann Abraham published her report in March 2006. | Ann Abraham published her report in March 2006. |
| She said that the government's maladministration had "caused injustice to a large number of people who, as a result, lost the opportunity to make informed choices about their future". | She said that the government's maladministration had "caused injustice to a large number of people who, as a result, lost the opportunity to make informed choices about their future". |
| Specifically, information published in government leaflets had misled large numbers of pensioners, the report found. | Specifically, information published in government leaflets had misled large numbers of pensioners, the report found. |
| Several times since then, Tony Blair and his ministers have rejected the idea that the pensioners should be offered full compensation for the pensions they may have lost. | Several times since then, Tony Blair and his ministers have rejected the idea that the pensioners should be offered full compensation for the pensions they may have lost. |
| This happened when their employers went bust, or closed their under-funded pension schemes, between 1997 and 2005. | This happened when their employers went bust, or closed their under-funded pension schemes, between 1997 and 2005. |
| The government has repeatedly argued that it was not at fault and it would be too expensive to pay full compensation. | The government has repeatedly argued that it was not at fault and it would be too expensive to pay full compensation. |
| The government has estimated the total cost of paying compensation at £15bn, but campaigners for people who have lost their pensions say the true cost would be much lower. | The government has estimated the total cost of paying compensation at £15bn, but campaigners for people who have lost their pensions say the true cost would be much lower. |
| Have you been affected by issues covered in this story? Send us your comments using the form below. | |