The Work and Pensions Committee (WPC) has written to the new Pensions Minister, Torsten Bell, to request further information on the government's consideration of issues surrounding the non-indexation of pre-1997 rights.

The WPC previously recommended that the government legislate to improve Pension Protection Fund (PPF) compensation levels, after its inquiry found that, for PPF members, the priority was indexation of pre-1997 benefits, which have had a disproportionate impact on women and older scheme members.

It also argued that the same must apply, funded by the taxpayer, to Financial Assistance Scheme (FAS) members, who tend to have more of their service before 1997.

Secretary of State for Work and Pensions, Liz Kendall, previously confirmed that the Pensions Minister, Torsten Bell, would be writing to the committee with an update "shortly", after confirming that work was underway to address broader pre-1997 discretionary increase issues.

However, WPC chair, Debbie Abrahams, has now written to Bell to request further updates, reiterating the prior committee's recommendations for change in this area, and highlighting recent updated estimates on the potential cost behind the changes.

In her letter, Abrahams noted that updated estimates from PPF suggested that increasing pre-1997 benefits for the future, where scheme rules provided for that, in line with the CPI, capped at 2.5 per cent, would increase the PPF’s liabilities by £1.7bn and reduce its funding level by 14 per cent (from 167 per cent to 153 per cent).

Updated PPF estimates suggest that increasing pre-1997 FAS benefits for the future would cost £3m in year one, rising to £13 million by year five; a total of £40m in the first five years and £93m in years six to ten.

However, she pointed out that the value of the PPF's reserves has increased to £13bn since the WPC first made its recommendations, with continued DB funding improvements seen in recent years.

Abrahams also stressed the need for a quick response from government, citing evidence from the WPC's ongoing inquiry on pensioner poverty, which highlighted the impact of cost-of-living increases on pensioners.

Indeed, polling from Age UK found that more than half (55 per cent) of pensioners (66+) said they would have to turn down or reduce the hours they use heating at home, while 10 per cent said they would have to reduce the number of hot meals they eat.

She also highlighted research from the Centre for Research in Social Policy at Loughborough University, which showed that the number of pensioners with incomes below the Minimum Income Standard increased from 13.1 per cent (1.5 million pensioners) in 2008-09 to 20.5 per cent (2.4 million pensioners) in 2021-22.

She also noted that the change in rules for the FAS was "particularly urgent", pointing out that FAS members tended to have more of their service before 1997 and so were disproportionately affected.

"The Secretary of State has told me that we can expect a letter from you on this issue," Abrahams wrote.

"I look very much look forward to your response, which I hope very much will be early and positive."

Abrahams also invited the minister to give evidence to the committee's pensioner poverty inquiry, "probably in the early summer, prior to the report’s publication".

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