DWP admits FAS is only worth £1.9bn

The Department for Work and Pensions (DWP) has confirmed the decision to increase the money available in the FAS fund from £2.3bn to £8bn is the cost in cash terms over the next 60 years, which means on a net present value basis the FAS has gone from £830m to £1.9bn. But Dr Ros Altmann, an independent consultant and former government adviser on pensions, says: “As tax is payable on the FAS and people getting FAS will not get means-tested benefits, the net cost is even lower - probably closer to £1.2bn over 60 years!” John Hutton, Secretary of State for Work and Pensions, says the extens...