17. Mr. Eric Insley (Barnsley, Central)What representations he has received regarding the fall in the value of pension funds. [154614]
§ The Economic Secretary to the Treasury (Miss Melanie Johnson)Pensions, by their very nature, are investments for the long term. Investors should not be deterred from making sensible provisions for their retirement by short-term volatility in the investment markets.
§ Mr. IllsleyI am grateful to my hon. Friend for that reply. Can she give any assistance to pension schemes such as that of the William Cook group, which is based in Sheffield? Its pension fund had a shortfall of some £4 million when valued in October last year, causing the pension scheme to ask its members either to increase their contributions or to change to a money purchase scheme, which will be to the detriment of those workers. Can my hon. Friend offer any advice to such pension funds?
§ Miss JohnsonMy hon. Friend was perhaps not aware of the previous difficulties. I am concerned to hear what he has to say, and I shall be delighted to meet him and discuss the matter further.
§ Mr. Tim Boswell (Daventry)Has the hon. Lady received any recent representations from the pension funds about the cost of the withdrawal of payable tax credits? Does it amount to more than £5 billion a year, and is she proud of that record?
§ Miss JohnsonAs the hon. Gentleman knows well, the reason for making the change was to increase and maintain investment in funds, rather than to encourage artificial withdrawal of money. At the same time as the change has taken place, stock market values have gone up and the values of the funds have increased.