Calls have been made by a law firm that represents British Steel pension scheme claimants for the Financial Ombudsman Service (FOS), the Financial Services Compensation Scheme (FSCS), and the Financial Conduct Authority (FCA) to temporarily delay financial redress being paid due to concerns that the current economic conditions will result in compensation that is inadequate.

With redress calculations being made during the current inflationary climate, claimants would end up receiving much less compensation than if they had been calculated this time last year. This is due to the fact that redress calculations are based on quarterly market assumptions of the price of gilt yields. Because their price has increased significantly over the last year, the value of redress will undoubtedly be less.

An associate from the law firm has contacted both the FOS and the FSCS to ask if they will suspend any complaints that are in progress already until the FCA consultation has completed on how to calculate redress and if any changes to the redress methodology are going to be implemented. The firm is asking that the FSCS tops up financial compensation payments that are owed to British Steel workers where new calculations reveal a higher figure.

Meeting With Stakeholders

The law firm has requested a meeting with stakeholders including MPs, and representatives from the FSCS, FOS, and FCA in order to discuss their concerns. This has been confirmed for September 2022. If you are a British Steel pension scheme claimant and are expecting to receive financial redress then call us today to talk through your options.

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