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British Steel: Labour MPs to meet steelworkers over FSCS payouts

Two Labour MPs have agreed to host a delegation of steelworkers at Westminster to discuss compensations offers being made by the Financial Services Compensation Scheme (FSCS).

British Steel: Labour MPs to meet steelworkers over FSCS payouts

Two Labour MPs have agreed to host a delegation of steelworkers at Westminster to discuss compensation offers being made by the Financial Services Compensation Scheme (FSCS). 

Stephen Kinnock, MP for Aberavon, and Nick Smith, MP for Blaneau Gwent, have both had constituents affected by the British Steel Pension Scheme saga, particularly those who transferred out via collapsed IFA Active Wealth (UK). 

The pair have agreed to meet a delegation of 15 steelworkers on 22 November. New Model Adviser® understands Kinnock has also extended an invitation to the Financial Conduct Authority (FCA).

Al Rush, principal at Echelon Wealthcare, who is leading efforts to help affected steelworkers, said: 'These men are decent and honourable workers who were lied to, and who now, in some instances, find themselves without any compensation at all.

'I don’t think any of us can look at that and regard it as an optimal outcome. Twelve months on, it’s an injustice that won’t go away. I know that it has affected men’s health and their careers.

'The steelworkers accept completely that FSCS is operationally independent from the FCA. In fact, the FSCS handbook clearly defines how it arrives at compensation.

'However, FSCS also has some latitude in that if it considers that departure from the compensation specification is essential in order to provide the claimant with fair redress, it may consider so accordingly.'

Rush said the group was not 'storming Westminster', but that the meeting was an opportunity for all interested parties to remain informed and consider how to progress. 

Watch our discussion of British Steel with Labour MP Stephen Kinnock here.

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