Pensions Minister, Paul Maynard, has said he will “look closely again” at the dispute between the BP Pensioner Group and the BP Pension Fund following a debate in parliament.

The dispute centres around decisions made by BP and the Pension Fund Trustee in 2022 and 2023 which, according to the BP Pensioner Group, led to an 11 per cent fall in the value of the pension in real terms in two years.

Speaking at the debate, MP for Orkney and Shetland, Alistair Carmichael, said that BP appeared to be “dealing from the bottom of the deck” regarding pension decisions made by the directors.

He called on BP’s leadership to spend time talking to the scheme’s pensioners in a “serious and meaningful way”.

Carmichael described the dispute as the equivalent of a “canary in a coalmine” for defined benefit (DB) pensions in the UK, and warned that what happens to the BP Pensioner Group could happen to others.

“That’s why this is a matter to which the government must now turn its close urgent attention,” he added.

In response to the issues raised in the debate, Maynard stated: “Having listened, I will look closely again at the situation regarding the pension schemes I have heard about today to understand fully what has happened and whether the arrangements currently in place in regulation are working as intended.”

Speaking on behalf of the BP Pensioner Group, former BP senior manager, Mike Slingsby, said: “We are grateful to Mr Carmichael and fellow MPs for hosting this important debate – and we’re encouraged by the response of the minister.

“Today has seen the appointment of Murray Auchincloss as BP’s new CEO. We urge him to show real leadership in line with the company’s values by revisiting the decisions made over the past two years.

“As the only group representing the interests of BP’s pensioners – we stand ready to work with Mr Auchincloss to bring this wholly unnecessary dispute to a close.”

BP recently announced that it would support some of its UK pensioners with means-tested one-off payments by providing further backing to its charity, formerly known and the BP Benevolent Fund.

In December 2023, BP Pensioner Group announced that it had begun a legal process against senior members of BP management and directors of the BP Pension Fund Trustee, following concerns around the value of members' pensions.

Pensions Age has contacted BP for comment.

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