PRESCOTT EARNED MORE THAN 125,000 ROBBED PENSIONERS - LORD OAKESHOTT

11.18.13am BST (GMT +0100) Wed 26th Jul 2006

New research released today by the Liberal Democrats shows that John Prescott has received more money from the taxpayer in salary, pension and benefits in kind than the Financial Assistance Scheme (FAS) has paid to people robbed of their pensions by Government incompetence.

Commenting, Liberal Democrat Pensions Spokesman, Lord (Matthew) Oakeshott said:

"The FAS has paid a pittance at a snail's pace. Less than £350,000 has been paid to only 113 of the 125,000 people robbed of their pensions when their schemes collapsed.

"At this rate most pensioners will die before they get a penny. The new review of the FAS administration tells a sorry tale of incompetence and delay in getting money to people in desperate need.

"This means that the FAS has paid less than John Prescott has received from the tax payer in the 20 months since the Government set it up in the first place."

ENDS

Notes to Editors

The Financial Assistance Scheme was created under the 2004 Pensions Act. It aims to help people who have lost out on their pension because their occupational pension scheme was under-funded when their company went bankrupt.

The first Annual Report of the Financial Assistance Scheme reveals that by 31st March this year, only 32 people had received any payment at all. Now a Parliamentary Answer has revealed that figure has crept up to 113 by 23rd June - only 1 more pensioner a day.

The Parliamentary Ombudsman in her March report 'Trusting in the Pensions Promise: Government Bodies and the Security of Final Salary Occupational Pensions', found the Government guilty of maladministration arguing, that literature the Government had distributed was potentially misleading, giving the impression that if a company went bankrupt their pension would still be safe, when this was not the case.

John Prescott receives a salary of £134,000 a year, and Government pension contribution of 26.8% of salary. Over a 20 month period this adds up to £280,000. He also receives a free flat at Admiralty House with a rental value of £87,600 per year, giving a grand total of £426,000.