Tories would re-float pensions life-boat
If the Conservative's win the next general election they promise to compensate pensioners whose savings schemes have collapsed.
Monday, 01, Oct 2007 12:00
The Conservatives today promised to compensate savers whose pension schemes have collapsed, with payments made within three months of taking office.
Work and pensions secretary Chris Grayling promised to re-float the pensions life-boat, which was quashed by Gordon Brown using the Parliament Act.
The Conservatives argue savers whose pension schemes collapsed should be compensated for 90 per cent of funds.
The government have consistently blocked this proposal, only committing to 80 per cent of funds. Ministers argue the 90 per cent figure has not been costed and it would be irresponsible to promise it pensioners.
Addressing the Conservative conference today, Mr Grayling said: "Today I give this commitment to all pensioners who have lost their pensions under Gordon Brown.
"We will refloat the life-boat and we will make the first compensation payments to pensioners within three months of taking office."
Mr Grayling argued Mr Brown's handling of the pension system is "nothing short of criminal".
Aside from the so-called £5 billion tax raid on pensions to fund the New Deal, Mr Grayling said the former chancellor had forced many pension trustees to close their schemes rather than negotiate his "interference".
Speaking in Blackpool, the shadow work and pensions secretary also said Mr Brown was failing to fix Britain's "broken society".
Mr Grayling said: "Britain under Gordon Brown is like a house with termites in the basement. The foundations are crumbling but all he does is repaint the front door".
He continued the message of compassionate Conservatism, promising to be tough on law and order, but also address drug addiction, broken families and help children in care.
He argued governments cannot ignore what is fracturing the country or they risk undermining what makes Britain great.
Earlier the former shadow chancellor Oliver Letwin outlined how the Conservatives plan to address social inequality and opportunity while retaining core Tory values such as individual freedom.
Speaking at a Guardian fringe event, Mr Letwin said the Labour government relied on schemes and handouts with out visible results, while the Conservatives believe on enabling people to lift themselves out of poverty.