compensation

Infected Blood Compensation Scheme

Statement from the Minister for the Cabinet Office on the Infected Blood Compensation Scheme

With permission, Mr Speaker, I would like to make a statement following the final report of the Infected Blood Inquiry.

Yesterday, the Prime Minister spoke about the anguish the infected blood scandal brought to those impacted by it. I want to reiterate his words and apologise again today. I am sorry.

The Prime Minister also spoke – on behalf of the whole house – of our gratitude to Sir Brian Langstaff and his team, for completing his comprehensive report…

I think seven volumes, two and a half thousand pages…

…and of our appreciation of all those who came forward as part of the inquiry.

It was the greatest privilege of my ministerial career to have met over 40 representatives of the infected blood community…

…in Cardiff, Edinburgh, London, Belfast, Birmingham and Leeds…

… as we finalised our response to compensation for this appalling tragedy.

The whole community’s bravery through immense suffering is what has enabled justice today…

…I know many of them will be watching in the gallery today….

…and I want to honour their fortitude through their unimaginable pain, as I lay out a more detailed response to Sir Brian’s second interim report on compensation.

We will provide the House with a further opportunity to debate the Inquiry’s full report after the Whitsun recess.

The Government will also respond to each recommendation in full as quickly as possible within its comprehensive response to the report.

Mr Speaker, the Prime Minister confirmed yesterday that the Government will pay comprehensive compensation to those who have been infected and affected as a result of this scandal.

I will now set out to the House the scheme the Government is proposing

…. And of course, more details of the scheme will be published online today.

(ALB, Eligibility, Burden of Proof)

We are establishing the Infected Blood Compensation Authority, an arm’s length body to administer the compensation scheme.

A shadow body has already been set up and an interim CEO has been appointed…

…and today I am delighted to announce the appointment of Sir Robert Francis as the interim Chair of the organisation.

The experience and the care that Sir Robert will bring to this role will ensure that the scheme is credible and trusted by the community…

His support in delivering this scheme will be invaluable.

Mr Speaker, those who have been infected or affected – as a result of this scandal – will receive compensation.

To be crystal clear…

…if you have been directly or indirectly infected by NHS blood, blood products or tissue contaminated with HIV or Hepatitis C…

…or have developed a chronic infection from blood contaminated with Hepatitis B …

…you will be eligible to claim compensation under the scheme.

And where an infected person has died, but would have been eligible under these criteria, compensation will be paid to their estate.

And this will include where a person was infected with Hepatitis B and died during the acute period of infection.

But, Mr. Speaker, Sir Brian could not have been clearer.

It’s not just the harm caused by the infections that requires compensation…

…it’s also all the wrongs suffered by those affected that must also be compensated for.

So, when a person with an eligible infection has been accepted onto the scheme…

…their affected loved ones will be able to apply for compensation in their own right.

That means partners, parents, siblings, children and friends and family who have acted as carers of those who were infected are all eligible to claim.

Now I am aware that being asked to provide evidence of eligibility will likely be distressing.

So I am determined to minimise that as much as possible.

And I am pleased to confirm today that anyone already registered with one of the existing Infected Blood Support Schemes will automatically be considered eligible for compensation.

Loss Categories

Mr Speaker, I would like to give thanks to the dedication and hard work of Professor Sir Jonathan Montgomery and the other members of the Expert Group…

… who were critical in advising on how the Government could faithfully translate the recommendations of Sir Brian for the scheme.

And in line with our previous commitment, we will publish the names of those experts today.

Now in his report Sir Brian recommended compensation be awarded with respect to the following five categories.

An Injury Impact Award…

…acknowledging the physical and mental injury caused by the infection.

A Social Impact Award…

…to address any stigma or social isolation as a result of the infection.

An Autonomy Award…

… acknowledging how family and private life was disrupted during this time…

A Care Award…

…to compensate for past and future care needs of anyone infected…

And finally, a Financial Loss Award…

…for past and future financial losses suffered as a result of the infection.

The Government accepts this recommendation…

…with two small refinements, informed by the work of the Expert Group, and designed for simplicity and speed. Two other principles that Sir Brian asserted.

First, the Care Award will be directly awarded to the person with the infection…

…or their estate.

And second, the Financial Loss Award will be paid either directly to the person with the infection, or

…where an infected person has tragically died before the establishment of the scheme, their estate and affected persons who were dependent on them…

Now,sadly many people have links to multiple individuals who were infected, or are both infected themselves and affected by another’s infection…

…so multiple injury awards will be offered to reflect the scale of the loss and suffering.

The scheme will be tariff-based. And we will be publishing an explanatory document, including examples of proposed tariffs on gov.uk.

However, Mr Speaker, this is not the end.

Over the next few weeks Sir Robert Francis will seek views from the Infected Blood Community on the proposed scheme before its terms are set in regulations, to make sure that the scheme will best serve those it is intended for.

Now, Sir Robert has welcomed the Government’s proposals as positive and meaningful. He will set out more details on engagement with the community shortly.

Payment Process

The Inquiry recommended that the scheme should be flexible in its award of compensation…

…providing options for a lump sum or regular payments.

We agree, and that is why awards to living infected or affected persons will be offered as a lump sum or periodical payments.

And where the infected person has died, estate representatives will receive compensation as a single lump sum to then distribute to beneficiaries of the estate as is appropriate.

We will also guarantee that any payments made to those eligible will be exempt from income, capital gains and inheritance tax…

…as well as disregarded from means tested benefit assessments.

We will also ensure all claimants are able to appeal their award…

…through both an internal review process in the Infected Blood Compensation Authority…

…and, where needed, the right to appeal to a First-tier tribunal.

And our expectation is that final payments will start before the end of the year.

Now, Mr Speaker, if you would permit, I would like to return to the House when the regulations are laid later this year…

…to make a further statement on an update on the delivery of the compensation scheme.

Support Schemes

But, I know from my discussions with the community just how important the existing Infected Blood support scheme payments are to them.

I recognise that many people sadly rely on these payments …

…and they are rightly keen to understand what the Government’s intentions are.

And I want to provide reassurance to all those out there today…

…that no immediate changes will be made to the support schemes.

Payments will continue to be made at the same level until 31 March 2025…

…and they will not be deducted from any compensation awards.

From the 1st April 2025, any support scheme payments received will be counted towards a beneficiary’s final compensation award.

This will ensure parity between support scheme beneficiaries, regardless of whether they were the first or the last to have their compensation assessed by the Infected Blood Compensation Authority.

And we will ensure that no-one…no-one, receives less in compensation than they would have received in support payments.

Interim Payments

Now Mr Speaker, I recognise that members of the infected blood community are still dying each week from their infections.

And there may be people, indeed there will be people listening today…

…who are thinking to themselves that they may not live to receive compensation.

So, I want to address some of those concerns too.

Today I am announcing that the Government will be making further interim payments ahead of the establishment of the full scheme.

Payments of £210,000 will be made to living infected beneficiaries – those registered with existing Infected Blood Support Schemes…

…as well as those who register with a support scheme before the final scheme becomes operational…

…and the estates of those who pass away between now and payments being made.

I know that time is of the essence…

…which is why I am also pleased to say they will be delivered within 90 days, starting in the summer.

….so that they can reach those who need it so urgently most.

Memorial

Mr Speaker, before I conclude, I would like to turn to the matter of memorialisation.

Many of those who were infected by contaminated blood or blood products have since died…

…died without knowing that their suffering and loss would be fully recognised, either in their lifetime or at all.

The lives of most of those who have died remain unrecognised.

And I note Sir Brian’s recommendations on memorialisation across the UK…

…and the Government will address these recommendations in detail as part of our wider response to this report.

Conclusion

So in conclusion, Mr Speaker, I know that the whole House will want to join me in thanking Sir Brian and the Inquiry for the work that they have done…

…and pay tribute to all those who have been caught up in this terrible tragedy and battled for justice for so long.

Yesterday was a day of great humility for everyone implicated by this Inquiry…

…and today, I can only hope – with the Inquiry’s report published, and with our firm commitment to compensate those touched by the scandal – the infected blood community knows their cries for justice have been heard.

Mr Speaker, I commend this statement to the House.

Apology to victims of infected blood scandal

First Minister makes statement in parliament

First Minister John Swinney has formally apologised on behalf of the Scottish government to everyone who has been infected or affected as a result of infected NHS blood or blood products in Scotland.

On Monday, the Infected Blood Inquiry Chair Sir Brian Langstaff made clear in the report that the situation was a result of “systemic, collective, and individual failures”.

The First Minister said: “More than 30,000 people across the UK were infected by contaminated blood products and transfusions between the 1970s and 1991 – with around 3,000 of those here in Scotland.

“That is 3,000 families in Scotland who have faced decades of unnecessary heartbreak and pain. They have been failed by the organisations and process that should have been in place to protect and support them and I am sorry.

“Those infected and impacted by this tragedy have worked tirelessly to ensure that its impact, and their suffering, is not ignored – and to ensure that what they have endured is never repeated.

“People who were infected with HIV or hepatitis as a result of NHS treatment have endured unimaginable suffering, and I know that Infected Blood Inquiry report published yesterday, will not heal wounds nor bring back those love ones who have been lost. I do, however, hope that it is a step forward in the journey towards a semblance of justice and a better future.

“The Scottish Government has already accepted the moral case for compensation for infected blood victims and we are committed to working with the UK Government to ensure any compensation scheme builds on the interim compensation which was paid out in 2022 and works as well as possible for victims.

“The Scottish Government will take forward the Inquiry’s recommendations for Scotland along with charities representing the infected and affected.

“We are determined to use the Inquiry’s report to ensure lessons have been learned so a tragedy like this can never happen again. The Scottish National Blood Transfusion Service has extremely high standards of blood safety and I would continue to encourage anyone who can do so to give blood, as this remains essential for thousands of patients.”

Brock calls for speedy action for the victims of the infected blood scandal

Deidre Brock MP has called for compensation for the victims of the infected blood scandal to be put in place without further delay.

The Edinburgh North and Leith MP formally handed in a petition to the UK Parliament on behalf of her constituents, prior to the final report of the Infected Blood Inquiry being published on Monday May 20^th.

The petition calls on the UK Government to implement the findings of the second interim report published in April 2023, which has already provided recommendations about compensation.

The inquiry Chair Sir Brian Langstaff made clear at the time that the compensation scheme should be set up straight away, to avoid adding to the decades-long delays people had already suffered, yet over a year later there is still no clarity and no timeframe has been set for payments.

The petition was led in Edinburgh North and Leith by Deidre Brock’s constituent Justine Gordon-Smith who, together with her sister Rachel lost their father, Mr Randolph Peter Gordon-Smith, to the contaminated blood scandal in deeply traumatic circumstances. They have been tirelessly campaigning ever since.

Ms Brock said: “I am handing in this petition on behalf of everyone in Edinburgh North and Leith who is working so hard for justice – people who received infected blood, their carers and the families of those who have been lost in the worst treatment disaster in the history of the NHS.

‘The moral case for compensation has long been accepted by government, so what are we waiting for? More delays merely worsen people’s suffering.

‘It’s a tragic truth that people who were infected are dying while the government dithers over the justice they and their families deserve.

‘The interim report was clear that they should go ahead with compensation immediately and that was published over a year ago.

“When will they lay out a clear – and short – timeframe for victims to get the compensation they’ve been waiting decades to receive? Or is the UK Government planning to kick this into the long grass again until they are kicked out of office?

‘I commend the efforts of my constituent Justine who has been tireless in her fight for equitable treatment for all those affected. I stand squarely with her, her sister and everyone who has suffered as a consequence of this scandal. They have already struggled enough and this battle for compensation is one they should not have to keep fighting.

‘I urge the government to finally do the right thing and deliver justice to the victims of the infected blood scandal.”

Scottish ministers keen to work with UK Government to address Post Office Horizon scandal

Steps to be taken to ensure Scotland is part of a UK-wide approach to Post Office convictions

First Minister Humza Yousaf has written to Prime Minister Rishi Sunak calling on joint working to ensure a UK-wide approach is taken to exonerate those wrongly convicted of criminal offences as a result of the Post Office Horizon IT system.

In the letter he wrote:

Dear Rishi

I am writing to you regarding the Post Office Minister, Kevin Hollinrake MP’s announcement in Parliament today that the UK Government intends to legislate to reverse the convictions of sub-postmasters convicted of criminal offences as a result of the Post Office Horizon IT system.

I welcome this announcement. The Post Office Horizon scandal requires urgent action to ensure those affected by unjust convictions can finally receive justice.

In the course of his statement, the Minister noted that the power to legislate to reverse convictions imposed by the Scottish courts is devolved to the Scottish Parliament but that he is keen to work with the devolved Governments to ensure that sub-postmasters in Scotland and Northern Ireland are not disadvantaged.

Scottish Ministers are keen to work with the UK Government to deal with the impact on sub-postmasters convicted in Scotland, ensuring that a UK-wide approach is taken to exonerate those wrongfully convicted in Scottish courts.

Given the unique circumstances arising from the Post Office Horizon scandal, it is right that normal processes for appeals are set aside to ensure that justice can now be delivered for those whose lives were greatly impacted by their wrongful conviction.

The Cabinet Secretary for Justice and Home Affairs, Angela Constance MSP, will contact her counterpart, the Secretary of State for Justice, to discuss how best to progress work in this area, whether this is by ensuring that the UK legislation will either apply directly in Scotland or by developing separate Scottish legislation to deliver the same effect for Scotland.

I trust that we can work together to ensure that those affected are now able to have their convictions overturned and obtain compensation.

Humza Yousaf

Potholes now pose a severe risk to life, safety experts warn

Motorists have been warned that the risk to life because of potholes is now severe, as new figures reveal UK roads are in the worst condition in years.

Road safety experts at Road Angel are urging councils to fork out and repair potholes or they say road users will lose their lives.

Local authorities paid out over £32 million in compensation for 5,596 personal injury claims due to potholes between 2017 and 2021, according to a freedom of information request.

Pothole-related breakdowns hit a five-year high in July this year, with 50,079 callouts to vehicles stranded with faults caused by potholes, an increase of nearly one-fifth from 41,790 in July 2022.

With fewer potholes being repaired in the last financial year than any other in the past decade, there is concern that thousands more will be injured, and killed, as a direct result of badly kept roads.

A wet summer has meant that UK roads are in a worse condition than expected as water causes greater damage and repairs are harder to carry out.

If left, potholes grow in size as traffic wears away the edges leaving greater numbers of larger holes that will cause serious damage if driven through.

Motoring organisations are reporting that these larger potholes fill up with water in the wet so are harder for motorists to spot.

Drivers run the risk of losing control of their car when they drive over potholes, especially if they don’t spot them and are moving at speed.

Potholes can cause extensive damage to a car’s tyres which can affect steering alignment, and can also cause wheels to burst, pop or deflate while driving which could send the vehicle out of control.

They can also cause suspension to become misaligned leading to tyres being at the wrong angle which can also lead to a loss of control.

Over 29,000 people were killed or seriously injured on UK roads last year and 11% of crashes were caused by a loss of control.

Gary Digva, founder of Road Angel, is now pleading with local authorities to assess the risk to life if the pothole problem in the UK is not repaired.

He said: “It is shocking to see that the pothole plague in the UK is not being taken seriously by local councils given how many people are injured because of them.

“With fewer potholes being repaired than in the last decade, it is only a matter of time before we start seeing an increase in accidents, injuries and fatalities unless something changes.

“Potholes are incredibly dangerous for motorists as they can cause them to lose control, especially if they cause damage to the tyres of suspension, or swerve out of the way to prevent damage.

“Almost 30,000 people were killed or seriously injured on UK roads last year, and we fear these numbers could increase with the current state of the roads.

“Potholes not only pose a threat to motorists, but they are also dangerous for cyclists because the uneven surfaces can cause the bike to lose control, leading to accidents and serious injuries.

“Pedestrians could also get caught in the crossfire of out-of-control vehicles, putting them at serious risk of harm if walking along a busy road.

“To make matters worse, we have had an unusually wet summer this year which makes potholes harder for road users to see, meaning more people are at risk of hitting potholes and losing control.

“The best advice to motorists while the roads are in this substandard condition is to drive with caution at all times and reduce speeds when approaching a pothole.

“Motorists concerned for their safety after hitting a pothole should ensure they go to a qualified mechanic to check the vehicle for any damage.

“It is also worth noting that to make a claim in the event of injury or car damage from a pothole, evidence must be collected to show it was caused by the council’s negligence.

“This is a tough process, but can be done using witness statements, photo or video evidence and medical records, so while the roads are neglected by the councils it may be worth investing in a dashcam to capture pothole proof.”

Prepayment meter outrage: Shapps acts to address forced installations

Business Secretary gives energy suppliers deadline to urgently report back on remedial action for customers who faced wrongful installations
This follows damning reports earlier this week highlighting what appear to be breaches of rules and regulations to protect vulnerable households
Energy regulator Ofgem also asked to toughen up their investigations after they failed to find serious failings by British Gas

Business and Energy Secretary Grant Shapps has today given energy bosses a deadline of Tuesday to report back to him on what remedial action – such as providing compensation – they plan to take should they have wrongfully installed prepayment meters in the homes of vulnerable customers.

It comes in the wake of British Gas admitting fault as a result of the Times investigation which showed even those with small children or medical conditions have not been shown forbearance, with reports of debt collectors breaking into homes to install the equipment.

But these findings by The Times newspaper follow several reviews by Ofgem of the services provided by energy suppliers, which have not identified this unacceptable behaviour – or other significant shortcomings – and have in some cases even given companies a clean bill of health.

Therefore the Business Secretary has today told Ofgem to toughen up on energy suppliers and investigate the customers’ experience of how their supplier is performing.

He called on the regulator to set up a new customer reporting system for households to pass on their own stories of how they are being treated – especially those who are vulnerable – and not just rely on energy firm bosses to share information with their regulator.

Business and Energy Secretary Grant Shapps said: “ I am appalled that vulnerable customers struggling with their energy bills have had their homes invaded and prepayment meters installed when there is a clear duty on suppliers to provide them with support. They need to refocus their efforts on their consumers, the British public, who are at the receiving end of this abhorrent behaviour.

“ I’m also concerned the regulator is too easily having the wool pulled over their eyes by taking at face value what energy companies are telling them. They need to also listen to customers to make sure this treatment of vulnerable consumers doesn’t happen again.”

News reports across the country have highlighted examples of the forced installation of prepayment meters in the homes of those who are struggling to pay their bills.

The regulator has also been asked to toughen up their reviews, going beyond the company headquarters to find out what is really happening in people’s homes by hearing from them directly and engaging more with charities and other groups that represent consumers.

Currently, energy suppliers are required to provide Ofgem with information to demonstrate how they comply with the rules on supporting vulnerable consumers, on customers struggling to pay and on the fitting of prepayment meters.

The Business Secretary wants to see the voices of consumers and those who champion their needs heard when deciding which energy companies are meeting expectations – with a customer reporting hotline being just one example we would want the regulator to consider.

On Thursday night a number of suppliers announced they would suspend forced installations after being pushed by Ofgem to pause the practice while they reassure the regulator they’re complying with the rules.

However, just over a week ago the Business Secretary launched a crackdown on the mistreatment of energy users by suppliers, already asking them to voluntarily commit to stopping this practice. He also demanded they share the number of warrants they’ve applied for in recent months and plans to publish the findings.

Earlier this week the Energy and Climate Minister also met British Gas CEO Chris O’Shea and expressed his horror at recent reports. He made it clear this kind of behaviour is unacceptable, especially from such a key and longstanding British company.

He urged Mr O’Shea to take urgent steps to repair the damage done to British Gas’ reputation and urgently come back to him outlining the role he will personally take to fix these cultural issues.

The British Gas boss was also told by the Minister that vulnerable, mistreated customers need to be identified and redress provided. He will be monitoring matters extremely closely to make sure this happens.

Last month the Business Secretary and Energy and Climate Minister called energy suppliers to voluntarily stop force fitting prepayment meters:

https://twitter.com/grantshapps/status/1617055839788929024

Infected blood scandal: £100,000 interim compensation payments to be made this month

Compensation will not be taxed or be subject to NI deductions and will be made UK-wide, delivering on the government’s commitment to meet interim recommendations of the inquiry.

Thousands of victims of the historic infected blood scandal, which occurred in the 70’s and 80’s, are being contacted this week to confirm that interim compensation payments will be made by the end of October.

The payments deliver the government’s commitment to meet, in full, the recommendations set out by infected blood inquiry chairman Sir Brian Langstaff in his interim report.

Infected individuals and bereaved partners who are registered with any of the four UK infected blood support schemes will receive letters this week confirming the £100,000 alongside details of how the money will be paid.

This follows confirmation that payments will not be subject to any tax or national insurance deductions. Neither will they affect any financial benefits support an individual is receiving.

Chancellor of the Duchy of Lancaster, Nadhim Zahawi, said: “I know from my own discussions with constituents who are victims of the infected blood scandal just how traumatic their heart-breaking experiences have been and I was proud to campaign as an MP on their behalf and continue that work as a government minister.

“No level of compensation will ever make up for the appalling treatment and circumstances that those affected by this scandal and their families have had to endure, but I hope that these interim payments go some way to demonstrate that we are, and always will be, on their side.”

Minister of State for Health, Will Quince, said: “The infected blood tragedy should never have happened. That’s why we’ve accepted Sir Brian Langstaff’s interim recommendations in full to help right this historic wrong for the thousands of people infected and bereaved partners left behind.

It’s right these interim compensation payments are being made as quickly as possible and I want to thank NHSBSA and the other UK scheme administrators for their relentless work on this. We’re continuing to listen and will be looking closely at any further recommendations as the Inquiry concludes.

The interim compensation payments will build on the support to those affected by the scandal already provided by the four UK infected blood support schemes.

The Government will respond to any further recommendations made by the Infected Blood Inquiry and its Chair Sir Brian Langstaff when the Inquiry concludes next year.

These interim compensation payments are expected to reach around £400 million for the whole UK, with agreement also reached for payments to be made through schemes in Scotland, Wales and Northern Ireland as well as those in England.

Victory for workers’ rights in INEOS refinery appeal

Unite members working at the INEOS refinery at Grangemouth have won a legal battle that strengthens collective bargaining rights and will prevent employers bypassing unions to impose pay deals on employees.

The Employment Appeal Tribunal has ordered global chemical firm, INEOS, to pay compensation to 28 Unite members employed at its Grangemouth site of £3,830 each, after it tried to impose a 2.8 per cent pay award on them in 2017. Their union, Unite, had previously rejected the offer.

This latest ruling strengthens the law on ‘unlawful inducements’ to surrender trade union rights. It builds on the ground-breaking Kostal UK Lytd v Dunkley and ors case, which Thompsons successfully won alongside Unite the Union last year.

Neil Todd, trade union specialist at Thompsons Solicitors, said: “This is a key victory not only for the Unite members involved, but for all workers in trade unions across the UK.

“The right of a recognised trade union to collectively bargain on behalf of its members is fundamental to workers’ rights and this judgment makes clear that it should be respected by employers.

“Along with the Kostal case, a spotlight is finally being thrown by the courts on trade union bargaining rights and it’s not looking good for employers who think they can ignore trade unions when they choose”

The Unite members argued that imposing the pay increase outside the collective bargaining process amounted to an unlawful inducement to give up collective bargaining rights.

Documents disclosed during the legal proceedings revealed a member of the firm’s senior leadership team had suggested the company needed to “engineer a way to get rid of Unite and replace them with a different representative body” after its members refused to vote in favour of the proposed offer.

The initial tribunal in 2018 ruled in favour of the workers, but INEOS appealed the judgment and that appeal was subsequently delayed pending the outcome of the related Kostal UK Lytd v Dunkley and ors case, which had progressed to the Supreme Court.

The Kostal case saw Unite members, again represented by Thompsons Solicitors, successfully take legal action against their Rotherham-based employer for trying to bypass union pay negotiations

. This was a ground-breaking case, billed at the time as the most important trade union rights case in over a decade – and the first case in the UK’s highest court on trade union bargaining rights.

Mr Todd said: “This victory sends a clear message to employers. One, you won’t get away with issuing statements of intent to vary an employee’s pay and deem that offer accepted if the employee continues to work.

“And two, you can’t simply declare something to be “a final offer” to suggest collective bargaining is exhausted and then bypass the recognised trade union to make direct approaches to workers.

“We are delighted to build on our ground-breaking Kostal case. Both cases make clear the central role trade unions play in the workplace and should give comfort to union members up and down the country.”

Unite says that the long-anticipated Employment Appeal Tribunal (EAT) judgment has huge ramifications for workers everywhere.

Sharon Graham, Unite general secretary, said: “This is an important legal victory for Unite and the wider trade union movement.

“Employers everywhere should take note. Unite the union will use every tool at its disposal to defend collective bargaining and will not tolerate employers like INEOS trying to bypass their obligations to negotiate.”

Top tips for avoiding getting scammed out of your pension pot

It is estimated that more than 1.3 million people have been targeted by unscrupulous regulated and unregulated financial advisors who have pedalled bad advice.

These unscrupulous advisors have persuaded many people to transfer their existing private pensions or extremely valuable defined benefit pensions, to open a SIPP (Self Invested Personal Plan) and to “invest” in unregulated, high risk and illiquid “investments”.

Many people have lost most, if not all, of their pensions which they have been paying into all of their working lives. In some cases, people have transferred pension pots of £500,000 or more into worthless “investments” sold to them by dodgy or incompetent financial advisors who were not authorised or regulated by the Financial Conduct Authority (FCA).

Investments that promise significant returns but deliver losses have led to people losing most or all of their pension funds, leaving them devastated, often traumatised, unable to retire comfortably and often unable to retire at all.

Solicitor Paul Higgins of Pension Justice, a law firm that specialises in assisting victims of pension mis-selling to help recover some of their lost money, says: “That old adage of ‘if it sounds too good to be true, it probably is too good to be true’ couldn’t apply more than in the case of pension mis-selling.

“We’ve had clients that have been promised huge returns on unregulated investments into things such as storage pods, airport car parking spaces, fractional ownership of property in Cape Verde, carbon credits and more, which sadly have all turned out to be worthless”.

Pension Justice has helped its clients, who have been given bad advice, to recover millions of pounds in compensation and has the following top tips to help people from falling victim to pension mis-selling.

Knowing what red flags to look out for could save a person from making a terrible mistake that could help them avoid losing their pension and ruining their retirement:

1. Be suspicious of cold calls from financial advisors. As a general rule don’t take cold calls. If you don’t know who they are, put the phone down. If you are interested in talking to them, do some background research into their qualifications and the investments they are offering. Promises of doubling your money are probably worthless. Unfortunately, there are many unscrupulous “advisors” out there who prey on people by offering “free pension reviews”. Under no circumstances agree to anything on the phone or invite them into your home, however convincing, how friendly they are or how much pressure they put you under.

Check with the Financial Conduct Authority to see if they are authorised to provide financial advice.

2. Do your homework on the investments offered. Look up pension mis-selling, discuss the investment opportunity with friends and family and ask someone to help you do some research online if you are not internet savvy. Unregulated investments are highly risky, and you could lose your life savings for the baseless promise of high returns.

3. Make sure you understand the terms and conditions. Your financial adviser is in a position of trust and has to communicate the terms and conditions of any products they are selling. They need to ensure you are fully informed before making any decisions. If your pensions advisers don’t explain any terms and conditions, you will likely be able to file a claim.

4. Ask for a full breakdown of fees and charges. Make sure you find out exactly how much this transfer will cost you in terms of fees and annual charges. Again, victims of mis-selling sometimes end up paying out more money to the advisor than their pension earns. If the advisor is not clear about these fees and charges, then walk away.

5. You have been advised to transfer your pension from a workplace pension. It is doubtful that it will be beneficial for you to transfer your extremely valuable defined benefit pension and there is a good chance that you will be mis-sold.

Paul said: “If you think you have already been a victim of pension mis-selling, it is possible to get compensation. Pension Justice have recently helped one client recover compensation.

“She transferred £35,000 from a defined benefit NHS Superannuation Scheme of Scotland pension into a SIPP and thereafter “invested in an Ethical Forestry scheme” which failed.

“We recently helped another client who had a defined benefit scheme pension with Proctor and Gamble and also a personal pension which together were worth over £158,000. She was persuaded to open a SIPP and to transfer her pensions into that SIPP and thereafter invest over £149,000 in “investments” which subsequently failed.

“Pension Justice pursued a claim on her behalf to the FSCS (Financial Services Compensation Scheme) and in February 2020 recovered £85,000.00 in compensation for our client, the maximum payable under the scheme.”

TUC calls for long Covid to be recognised as a disability to prevent “massive” discrimination

The TUC has called for long Covid to be urgently recognised as a disability and Covid-19 as an occupational disease, to give workers access to legal protections and compensation.

The call comes as the TUC publishes an in-depth report on workers’ experiences of long Covid during the pandemic.

More than 3,500 workers responded to a TUC survey on the impact of long Covid on people’s daily working lives.

The survey reveals that, of those surveyed:

Nearly 3 in 10 (29 per cent) have experienced symptoms lasting longer than a year.
More than 9 in 10 (95 per cent) have been left with ongoing symptoms.
A clear majority had experienced side effects including brain fog (72 per cent), shortness of breath (70 per cent), difficulty concentrating (62 per cent) and memory problems (54 per cent).
Over half (52 per cent) had experienced some form of discrimination or disadvantage due to their condition.

The report highlights how frontline workers have been disproportionately affected by long Covid.

Over three-quarters (79 per cent) of those who responded to the TUC’s survey identify themselves as key workers, with the majority working in either education or health and social care.

More than two-thirds (68 per cent) of respondents were women.

Long Covid in the workplace

The report reveals the extent of discrimination in the workplace towards those with long Covid.

Over half (52 per cent) of respondents said they had experienced some form of discrimination or disadvantage due to their condition.

Workers told the TUC how they were faced with disbelief and suspicion when they disclosed their symptoms:

Around a fifth (19 per cent) said their employer had questioned the impact of their symptoms.
One in eight (13 per cent) faced questions from their employer about whether they had long Covid at all.
One in 20 respondents (5 per cent) said they had been forced out of their jobs altogether because they had long Covid.

Respondents described the difficulties that they faced trying to work while experiencing a range of long Covid symptoms.

One person – who contracted Covid-19 at work – said that when their employer went ahead with an international event in the first wave of the pandemic: “I was still expected to work long hours, handle stressful situations in impossible timeframes, find and fill in forms (which I struggled to do because of cognitive issues), and spend hours on Zoom calls when I struggled to talk and breathe, resulting in extreme chest pain, shortness of breath, exhaustion and severe symptom relapses.”

Respondents were also concerned about what the future might hold for them at work given the amount of sick leave they had been forced to take due to their long Covid symptoms.

Around one in six respondents (18 per cent) said the amount of sick leave they had taken had triggered absence management or HR processes.

New rights and protections for those with long Covid

The TUC is calling for the government to urgently recognise long Covid as a disability under the Equality Act.

The Equality Act 2010 defines disability as a “physical or mental impairment…[that] has a substantial and long-term adverse effect on [their] ability to carry out normal day-to-day activities”. Government guidance makes clear that ‘long-term’ means 12 months or more.

The TUC says that many who have long Covid already meet this criteria and should therefore be protected under the law rather than forced to go through the stress of employment tribunals.

Extending Equality Act 2010 protections so they cover workers with long Covid would ensure employers cannot legally discriminate against them. It would also put a duty on employers to make reasonable adjustments that remove, reduce or prevent any disadvantages workers with long Covid face, as for any other enduring condition or disability.

In addition, the union body is calling on ministers to recognise Covid-19 as an occupational disease – entitling employees and their dependents to protection and compensation if they contracted the virus while working.

TUC General Secretary Frances O’Grady said: “Many of the workers who have carried us through the pandemic are now living with debilitating symptoms of long Covid. And we’re beginning to hear troubling stories of a massive wave of discrimination against people with long Covid.

“It’s time to recognise this condition properly – and make sure workers who are living with long Covid get the support they need to do their jobs.

“Long Covid must be recognised as a disability. That would mean workers are protected by the Equality Act, and would have a right to get reasonable adjustments at work.

“And Covid-19 should be designated as an occupational disease. That would allow workers who contracted Covid-19 at work and are living with the consequences to claim the compensation they are due.

“Employers must also act. They should make sure they make reasonable adjustments for workers with long Covid, and complete specific risk assessments to make sure workers with long Covid are safe at work.”

Lesley Macniven, Chair of the Long Covid Support Group, who worked with the TUC on its report, said: “Even those with ‘mild’ Covid can suffer daily with fluctuating symptoms, exhausted and alone. Promises we’ll ‘just get better’ have been proved otherwise.

“A year on we need legally enforceable guidance for employers and government – informed by unions, occupational health and patient groups with significant lived experience managing long Covid.

“Patients need time to convalesce, then recuperate through a very gradual, flexible phased return to work, over months, to achieve a sustainable return.

“Long Covid is disabling young, previously healthy workers. This key step is needed to take the effects of long Covid seriously, enable rehabilitation and protect dedicated workers from discrimination due to poor understanding of the condition.”

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Scottish lawyer calls for a change in legislation to protect cyclists

An Edinburgh lawyer is calling for the UK to adopt a similar approach to other European countries of presumed liability of drivers when cyclists are involved in a road accident.

Amid the COVID-19 pandemic the government has been promoting cycling, not only for its health benefits during lockdown, but also as an alternative to public transport. Personal injury specialist at Thorntons, Michelle Adam, believes that UK roads aren’t set up to deal with an increase in cyclists, meaning there is a higher chance of an accident happening – and cyclists should be protected.

Michelle said: “If the government is serious about increasing the use of bikes, they need to invest in the correct infrastructure to keep cyclists safe – resurfacing roads and creating more designated cycle lanes. Without this, it’s inevitable there will be more accidents.

“At the moment in the UK when a cyclist is involved in an accident with a car or other vehicle, the cyclist needs to prove that the car driver is to blame for the accident. That can sometimes be difficult, particularly if a cyclist is very badly injured and there are no witnesses.

“Across most of Europe however, there is a different approach which is known as presumed liability. That means that a car driver will be liable if they collide with a cyclist. The only way to avoid responsibility is if the driver can prove that the crash was unforeseeable or out of their control. I believe this approach should be adopted in the UK.

“If a cyclist is involved in an accident with a car, they are much more likely to be seriously injured than the car driver. Motor vehicles are heavy pieces of equipment which are full of safety features to protect their passengers, which is not the case for someone on a bike.

“Cyclists should obviously obey the rules of the road and take care for their own safety but they ought not to have the burden of having to prove the other party is at fault. In our changed world, I believe now is the right time to change the law, raise awareness and make all road users safer.

“But for now, if the worst happens and you are knocked off your bike and suffer an injury, you might be entitled to compensation if you can prove the other party is at fault. If you have an accident, try to get names of any witnesses, details of the driver and the registration number of the vehicle involved. These will be useful evidence if you decide to pursue a personal injury claim.”