THE GOVERNMENT FACES a £5bn bill to compensate 85,000 workers who lost their pensions when their employers went bust, amid growing speculation that a report this week by the parliamentary ombudsman will pin the blame on the Department for Work and Pensions (DWP), reports The Guardian .
According to the paper, the long-awaited report by Ann Abraham, to be published on Wednesday, is expected to say that the government misled workers by falsely promoting the idea that company pensions were guaranteed. But the report is likely to prompt a clash with ministers, who are increasingly ignoring recommendations by the ombudsman. Even if it calls for a full restoration of lost pensions, ministers may refuse to pay out. Last October, in evidence to a select committee, Ms Abraham hit out at the government for seemingly "picking and choosing" which of her recommendations it wanted t...
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