The Court of Appeal has found the Government guilty of failing to secure 125,000 occupational pensions.
The court today ruled the Government’s maladministration caused some non-financial losses but it did not contribute significantly to individuals’ losses.
A spokesman for the Department for Work and Pensions (DWP) says: "We are pleased that the court found in the Government’s favour on the key point relating to the Ombudsman’s powers.
“We applied to the Court for leave to appeal on a protective basis but we will want to consider this complex and lengthy judgment in more detail with our colleagues in Government before deciding whether to pursue an appeal.
"We have already announced a significant settlement which will help some 140,000 people who lost their pensions, bringing the Government’s total commitment to the Financial Assistance Scheme to £2.9bn in net present value terms.
"This has been welcomed by campaigners and Parliament."
The DWP has appealed to the House of Lords, a move that has outraged campaigner the Pensions Action Group (PAG).
Ros Altmann, pensions adviser and PAG campaigner, says: “We are astonished that the Secretary of State, James Purnell, wants to appeal to the House of Lords. It is now six - nil against the DWP.
"How many verdicts will it take to make the Government see sense?”
A spokeswoman for the DWP says: “The reason we requested leave to appeal to the House of Lords is because basically a matter of process - we need time to really go over it and discuss it with other government departments, something we have not been able to do because the judgement was only made public this morning - if there is something in there we want to appeal we would not be able to if we had not first asked for leave to appeal from the Court of Appeal.
"They have said no - which we expected but this now leaves us free to petition the Lords if there is something we need clarification on.
“The Government's appeal was on the basis that we did not accept that Ombudsman's findings are always binding and on this point the Court supported us.
“The FAS settlement is not affected by this and, as you know, we are working through regulations at the moment to get 90% of accrued pension to the people who've lost their pensions as quickly as possible.”
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