Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Rejected
Government departments showed unclear responsibility for AEAT pensions, creating further confusion for members.
Conclusion
When we asked it why no part of government had taken responsibility for the issue, DWP described pensions policy as a complex and wide-ranging area which touches on a number of departments. DWP is responsible for private sector pensions rather than public sector pensions, which it told us are the responsibility of HM Treasury and the Cabinet Office.17 We asked why DWP initially responded to complaints on behalf of government, before saying it was not responsible and directing members to other parts of government such as the then Department for Business, Innovation and Skills or the Parliamentary and Health Service Ombudsman (PHSO). DWP responded that its factsheet was aimed at answering questions as well as it could by setting out government’s position on different issues. However, DWP acknowledged that the factsheet had not been clear about who was responsible for what, and that it had to subsequently apologise for the fact that the factsheet added to the confusion.18
Government Response Summary
The government rejects the recommendation, stating that changing the ombudsman's remit is a policy matter and the 2013 Fair Deal policy prevents similar situations from reoccurring.
Government Response
Rejected
HM Government
Rejected
2.1 The government disagrees with the Committee’s recommendation. 2.2 Complaints on this matter have been considered by relevant government bodies, including the Pensions Ombudsman (and the Parliamentary and Health Service Ombudsman), and decisions on these complaints including whether they are able to investigate them have been taken according to the remits given to them by Parliament and other broader statutory constraints. As referenced in paragraph 6.5 of HM Treasury guidance, Parliamentary scrutiny of public spending, the department cannot respond further on this matter as changing the remit of an ombudsman would be a policy matter. 2.3 As set out in the Committee’s report, the government’s 2013 Fair Deal policy means that the specific circumstances of this case would not happen again, as in cases of privatisation the pensions would now be expected to remain in public sector schemes.