§ The Minister for Pensions (Malcolm Wicks)Improving member protection is a Government priority. As outlined in the Pensions Bill, we intend to introduce the new pension protection fund, which will enhance protection for pension scheme members and improve confidence in pension provision.
It will protect members of defined benefit and hybrid schemes by paying compensation should their employer become unable to meet their pension obligations following insolvency.
Our intention, subject to parliamentary approval, is that we protect as many individuals as we can, from as early a date as possible. Therefore, although we have a 27WS challenging timetable, our plans are to have the organisation up and running in April 2005. In order to do this we need to carry out essential activities, which will require some expenditure in advance of the legislation achieving Royal Assent.
Parliamentary approval for additional resources of £450,000 for this new service will be sought in a supplementary estimate for the Department for Work and Pensions. Pending that approval, this urgent expenditure will be met by a repayable cash advance from the contingencies fund.