Source · Select Committees · Public Accounts Committee
Recommendation 12
12
Rejected
Government’s Fair Deal policy seeks to prevent future pension issues, yet ombudsman jurisdiction gaps persist.
Conclusion
We asked how government can ensure that, if a similar thing were to happen again, pensioners making complaints would not be shunted from pillar to post in trying to make appeals and getting no advice or satisfaction. DWP told us that the government’s Fair Deal policy introduced in 2013 means that these specific circumstances would be unlikely to happen again, as in cases of privatisation the pensions would now be expected to remain in public sector schemes.22 PHSO said that it would be helpful if government considered ombudsman jurisdictions at the formative stages of policy, to avoid gaps such as these. It 15 Q 79 16 C&AG’s Report, para 3.2, 3.6 17 Qq 28, 32 18 Qq 56–57, 67 ; C&AG’s Report, para 3.9 19 Q 66; C&AG’s Report, para 16 20 Qq 41–43 21 Q 66 22 Qq 31, 68, 80 10 AEA Technology Pension Case also told us it had been working with government departments to produce complaints standards, with an aim to move towards consistent practice in how government handles complaints. PHSO told us that a common theme in its investigations is the need for clear communication of change by government so that people can think properly about the options available to them.23 DWP said it would be careful to ensure responsibilities are set out more clearly in any similar case in future.24 23 Q 74–74 24 Q 67 AEA Technology Pension Case 11 2 Lessons for pensions and financial advice Routes of appeal for complaints about pensions and advice
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 ensures similar circumstances will not reoccur in the future.
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.