It was a decision taken in the 1990s that led to a problem in 2012 and only now, 10 years later, has there been some sort of breakthrough. But I’m delighted that the National Audit Office has agreed to my request to look at the AEAT Pension case and produce a report about what went wrong.
In the 1990s, part of the Atomic Energy Authority was privatised and a new company, AEA Technology, created. Nine in ten of those who transferred to the new company transferred their pensions to the new company pension too.
So far, so simple, but the AEAT Pension Campaign has always been clear they were not informed of the risks of the new pension compared to their government-guaranteed one – indeed, most believed it would still be government-guaranteed – and so when the new company went bust in 2012 and their pensions had to enter the Pension Protection Fund, affecting their value, it came as a shock.
Through dogged work over the past decade, the campaign group has been able to highlight the assurances they were given in transferring to the new pension, the lack of information about the risks and despite this how – on the request of the new company – the advice to them was strengthened to ensure more were encouraged to transfer their pensions.
Ordinarily in cases like this, a case could be taken to the Parliamentary and Health Service Ombudsman. But the Government Actuary Department, which produced the advice to the pensioners, is not within the Ombudsman’s remit, so for the last 10 years the campaign group has been going from pillar to post to try and get another department or organisation to look at their case.
I have supported the AEAT Pension Campaign since I was elected in 2019, partly as the largest number of the pensioners are within the constituency of Wantage and Didcot. I’ve met with several ministers; introduced a bill in the House of Commons to change the Ombudsman’s remit so that they could look at the case; and founded and chair a group of MPs and Lords committed to supporting the campaign.
Last year I wrote to and then met with the National Audit Office, who have looked into high-profile cases such as British Steel and Equitable Life. I persuaded them to look at the case and they will produce a publication setting out their findings soon.
Alongside this, Parliament’s Public Accounts Committee, which works closely with the National Audit Office, has launched a call for evidence about this case as part of a hearing it will be having. I’m very pleased to have a breakthrough – and it could not have happened without the determination of the AEAT Pension Campaign.
