Chancellor acknowledges Banbury’s MP for budget pension protection changes
30/11/2025
Mr Woodcock has been pushing for the change which will benefit around 250,000 pensioners
Banbury’s MP was acknowledged by the Chancellor of the Exchequer in last Wednesday’s budget for his work pushing for a change in pension compensation payments.
Sean Woodcock highlighted the issue to Rachel Reeves after a constituent made him aware of the problem.
The Pension Protection Fund acts as a safety net providing compensation to pensioners in the event of their employer becoming insolvent. The Financial Assistance Scheme is its predecessor.
Ms Reeves announced that compensation payments made from the schemes on eligible pensions built up before April 1997 will from now on be linked to CPI-inflation (capped at 2.5 percent).
Around 250,000 affected pensioners will have more of their incomes inflation-proofed, after suffering a decades-long erosion in spending power. Their incomes will be boosted by an average of £80 in the first year, with some pensioners set to receive £340 more.
Both schemes had previously only increased compensation payments in line with inflation on pensions earnt after April 1997.
Mr Woodcock said: “I am delighted that these changes have been made at the Budget, as pre-97 pensioners in my constituency have seen the value of their compensation payments drop by almost a quarter in the past five years.
“I was incredibly proud to be mentioned by the Chancellor at the Budget for bringing this to her attention, and I welcome the Government’s engagement with campaigners in our constituency in righting this long-standing wrong.”
Published: by the Banbury FM News Team
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