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Politics

Rhys ab Owen MS calls for justice in ‘pension theft’ scandal

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A SENEDD member called on the next UK Government to finally put an end to the “theft” of steelworkers’ pensions following a two-decade campaign for justice.

Rhys ab Owen said staff at Allied Steel and Wire (ASW) in Cardiff lost their pensions when the company collapsed in 2002, making thousands of people unemployed.

Leading a Senedd debate, he said: “This meant that it was no longer about fairness, or what pensioners were owed, but whatever the scheme could afford to pay out.

“’Wind up’ is one term for it – an aptly named term, perhaps – another term is ‘pension theft’, and I believe that is a far more effective term.”

“The ASW workers were not the first nor the last to experience this injustice, this gutting of their pensions. Wind-ups were increasingly common in the early 2000s and punished those who were most loyal and hard-working.”

Mr ab Owen, who sits as an independent, said the then-Labour UK Government’s financial assistance scheme had an arbitrary maximum payout of 90% of the pension value.

“This meant pensioners lost 10% of their pensions from the get-go,” he explained. “Then more due to inflation, and on top of it all, many had to pay tax on the measly sum.

“For workers who had worked for decades – slaving away day after day in dangerous work –  it is no wonder this faulty scheme led to protests across the UK.”

The South Wales Central MS warned that many pensioners have still not been offered compensation despite a parliamentary ombudsman report and a Court of Appeal case.

“Do we really need another ITV drama to resolve this scandal?” he asked, appearing to refer  to Mr Bates vs The Post Office which brought the Horizon scandal to life.

His father – Owen John Thomas, a former Plaid Cymru politician, who represented the same region in the then-Assembly – was involved in the steelworkers’ campaign from the outset.

Mr ab Owen paid tribute to his father in a statement to the Senedd in the days following his death in May, saying it was characteristic of him to put other people and the country first.

During the debate on June 21, he said: “This struggle for Cardiff workers has lasted so long that it’s been through two generations of the Thomas family, my father being a constant voice in this battle from which I am glad to take on the mantle.”

The former barrister and law lecturer warned countless workers have died waiting for their pensions to be restored, with some unable to pay for their own funerals.

“Some have, tragically, taken their own lives waiting to find justice,” he said. “This is a scandal still unresolved, a scandal that has been going on for 22 years; widows still paying mortgages that should have been paid off decades ago.”

Expecting a Labour landslide in the general election on July 4, Mr ab Owen asked: “Will the party founded and funded over the years by the workers, will they finally give the ASW steelworkers and their families the money that they are owed?”

Adam Price said it was fitting for the debate to take place next door to T? Hywel where the steelworkers’ journey for justice began in a meeting organised by Mr ab Owen’s father.

He told the chamber or Siambr: “Time after time, the story of capitalism in these islands –  and the story of the failure of our democracy – is the story of pension scandals….

“It says something about these countries in the UK – the way we treat our workers, our older workers in retirement. It’s that moral question this incoming Labour Government now faces.”

The former MP and Plaid Cymru leader welcomed a pledge in Labour’s manifesto on miners’ pensions, calling for an equal commitment to former steelworkers.

Sarah Murphy, responding for the Welsh Government, acknowledged the injustice the Allied Steel and Wire pensioners have faced.

The minister pointed out that pension powers are not devolved as she called on the UK Government to “do the right thing and give restorative justice” to former ASW workers.

She told the Senedd: “We are disappointed the UK Government has failed to secure the pensions justice for the former ASW workers that they deserve.

“I recognise the sense of betrayal that they must feel….

“These pensions are not a gift; they are deferred salary. The contributions were made in good faith by ASW workers in the expectation that they would receive security in retirement – not just for them, but also for their families.

“Those contributions should be honoured and honoured in full.”

News

Welsh Government extends Help to Stay Wales scheme

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Support for struggling homeowners continues until March 2026

THE WELSH GOVERNMENT has announced an extension of its Help to Stay Wales scheme, aimed at preventing repossession and homelessness for struggling homeowners. The initiative, originally set to expire in 2025, will now continue for an additional 12 months, providing much-needed financial assistance to those at risk.

Housing and Local Government Cabinet Secretary Jayne Bryant said the scheme reflects the government’s commitment to ensuring stability for families during difficult times.

“A secure home is the cornerstone that provides stability and security for families to succeed,” she said. “That’s why I’m pleased to extend the Help to Stay Wales scheme, which offers crucial support to those facing repossession or homelessness.”

Mortgage support for those in need

The extension comes as mortgage arrears remain high across Wales, with many homeowners struggling due to the economic climate. The scheme targets eligible households who have already explored all available options with their mortgage provider and sought debt advice.

Under the scheme, homeowners receive free specialist mortgage advice, funded by the Welsh Government, ensuring they fully understand their options before seeking financial assistance. If all other avenues have been exhausted, the scheme can provide a partial repayment of an existing mortgage balance through a low-cost equity loan, helping to reduce repayments to an affordable level.

Early intervention to prevent homelessness

The initiative aligns with the Welsh Government’s long-term ambition to end homelessness by prioritising early intervention and prevention. The additional funding will ensure more families and individuals receive support before they face losing their homes.

Full guidance, including eligibility criteria, is available on the Welsh Government website at Help to Stay – Wales | GOV.WALES.

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Business

Drakeford resists call to exempt children from tourism tax

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MARK DRAKEFORD resisted calls to exclude under-18s from the Welsh Government’s plans for a tourism tax from 2027.

The finance secretary told the Senedd’s finance committee that exempting children from the levy as in some other European countries would lead to a “significant fall” in the tax take.

He said: “I see that you have heard from a range of voices who argue that particular groups ought to be excluded from the levy…. This is a broad-based tax with a low charge – if you narrow the base, the only way you can sustain the take from the tax is to put the charge up.”

Prof Drakeford said taking under-16s out of the £1.25-a-night levy would see the estimated £33m revenue fall to £21m, “eroding the chances that the levy will be of any use.”

He stressed: “If the committee wants to argue for excluding children from the levy, you are arguing for a higher charge on the people who are left – you can’t have both.”

Prof Drakeford pointed out: “Children buying sweets pay VAT. Children are not excluded by the virtue of being children from the taxation system.”

He defended the visitor levy bill after a report found the levy could lead to between 250 and 730 job losses and cost the Welsh economy £16m to £47m a year.

The finance secretary was questioned about the economic impact assessment by Calvin Jones, a professor at Cardiff University, as he gave evidence on February 12.

He said: “Professor Jones’ report deals with a set of complex considerations. It has, inevitably, to make a series of assumptions and deal with a series of uncertainties. It assumes, for example, that all 22 local authorities have adopted the levy from day one.”

Rejecting suggestions the report undermines the case for a levy, Prof Drakeford told the committee some witnesses exclusively referred to figures for a worst-case scenario.

He said: “I did think there were some witnesses who came before you who presented Prof Jones’ report as though it was a set of predictions rather than a range of possibilities.”

Prof Drakeford added: “Even if the impact was at the top end, you are talking about a few hundred jobs in an industry that employs over a million people…. This is not an industry, I think, that will struggle to accommodate the impact of the levy.”

Pressed about the timing with the sector still recovering from the pandemic, he said: “When some organisations have said to you ‘oh, not now’, what they really mean is ‘not ever’.”

Prof Drakeford stressed “There’s a long lead in, this is not an idea that has suddenly been put in front of the sector and there’s a long path in front of us as well.”

He said the earliest any council could introduce a local levy would be April 2027, adding that he expects only a modest number of local authorities to do so initially.

Peredur Owen Griffiths, who chairs the committee, raised the “cumulative” effect of policies such as national insurance and the 182-day rule for holiday lets to qualify for business rates.

South Wales East MS Peredur Owen Griffiths
South Wales East MS Peredur Owen Griffiths

Prof Drakeford replied: “We’re familiar with the argument about comparing apples and pears but that list, I think, is the full fruit salad because they’re all completely different issues.”

He told the committee many microbusinesses in the tourism sector will be no worse off after the UK Government’s decision to increase employer national insurance contributions.

Asked about introducing a day-visitor levy rather than an overnight tax, the former First Minister said: “I didn’t want to see the search for the perfect driving out the possible.”

Prof Drakeford rejected suggestions that families could upend their holiday plans over the proposed £1.25-a-night levy, arguing it will have a marginal impact.

He said: “There are so many other factors that will have an impact both on costs and people’s decision-making which will loom far larger than the visitor levy.

“On the whole, what we hear from the continent where this is commonplace is that visitor levies are broadly invisible to the end user.”

Prof Drakeford explained the bill would require councils to consult on whether to adopt a levy then report annually on the use of the revenue raised.

He told committee members: “The idea that you could easily slide a bit of that money away towards something else, I don’t think will be easy.”

Prof Drakeford said the visitor levy bill, which would create a fee-free register of providers, will be followed by a second bill on licensing accommodation in the autumn.

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Community

Christmas council tax amnesty considered in Pembrokeshire

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WHILE the bleak February winds blow across the land ahead of hopefully better weather in Spring, senior Pembrokeshire councillors discussed a Christmas festive cheer call earlier this week.

A Notice of Motion by Independent group leader Cllr Huw Murphy, before the February meeting of Pembrokeshire County Council’s Cabinet asked: “That PCC do not issue any summonses for appearance at magistrates court for non-payment of council tax during the month of December.”

It added: “At a Corporate O&S meeting on November 14 [2024] it was disclosed that since April 2024 PCC have sent out 14,000 reminder letters with regards to council tax (late payment) and issued 4,000 summonses for non-payment of council tax, which clearly evidences the financial pressure many Pembrokeshire residents currently face.

“December is for many families a festive month and although the debt does not go away the avoidance of any prosecutions during the month of December in the lead up to the festive holiday will indicate some empathy by PCC towards its residents under most financial pressure.”

A report for Cabinet members said the court issues the council with four weekly hearing dates approximately six months in advance, and Revenue Services does not hold council tax liability order court hearings in December as the pre-allocated dates would mean the hearing could fall close to Christmas Day.

It added that, to meet regulatory timescales, summonses are issued in late November and early December to ensure all documents are correctly served ready for a court hearing in January.

Members were recommended to retain the current practice to issue summonses in November/early December for the court hearing in January.

The report said, as of October 1 of last year, the council had council tax arrears of £7.512m, an improvement from the £8.384m at March 31, with a risk that not issuing any December summonses “would lead to a delay in the recovery of council tax arrears and a subsequent increase in council tax arrears”.

At the February Cabinet meeting, members heard Cllr Murphy was happy to either accept the recommendation or withdraw his motion having received the additional information.

Members agreed to support the recommendation.

Cllr Murphy is no stranger to festive cheer calls; in 2023 asking for the council to overturn a “mean-spirited” decision to end the free collection of trees in Pembrokeshire after Christmas.

That 2023 ‘Christmas tree call-in’ motion, supported by councillors Vanessa Thomas, Anji Tinley, Alan Dennison, Elwyn Morse, Michael James and Iwan Ward, was defeated by nine votes to four.

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