Time is running out for steelworkers to claim compensation

Steelworkers from Scunthorpe, Middlesbrough and Teesside affected by the British Steel Pension Scheme (BSPS) scandal are being encouraged to come forward and claim compensation before time runs out.

The period during which steelworkers can claim compensation for bad advice to transfer out of their generous pension schemes is coming to an end for many this year.

Around 7,700 steelworkers were advised to walk away from their final salary pension schemes and transfer into private arrangements, with many of them being misadvised and therefore eligible for compensation. Many may not realise that they should not have been advised to transfer their pensions.

Clarke Willmott has set up a taskforce to deal with the claims and lawyers say that on average their clients have lost significant amounts from their pensions if they transferred out before April 2017 when transfer values approximately doubled.

Stephen Searle, Partner and financial services specialist with the team who represent over 1000 steelworkers, said: “Generally speaking, there are six years within which to claim or complain and we know that a lot of people at the Northern steelworks transferred out in 2016. This means that time is fast running out for any claim for compensation to be made.

“We’re working hard to raise awareness and encourage anyone who transferred in 2016 to come forward because time will run out to claim their losses this year.

“We are hearing that some people don’t think they have a claim because the value of their pension has gone up in the last few years since they transferred, but that doesn’t mean that they haven’t incurred a loss. The average loss we have seen for people who transferred before April 2017 is around £320,000.”

To date, we have recovered over £5 million in compensation for steelworkers affected in Teesside, Scunthorpe, Middlesbrough and South Wales. We have put together a dedicated team to help with the cases and are happy to offer free initial consultations to discuss transfers, with no obligation.

Stephen continued: “We understand that some people are reluctant to complain because they’re not sure why they were mis-sold, or whether they’ve incurred a loss. Even if they don’t intend to instruct a solicitor, we really want people to get in touch so that we can explain. Hopefully, we can help people to avoid running out of time to get the compensation they deserve.

“There is no requirement to have legal representation when dealing with the Financial Ombudsman Service or FSCS, however we deal with complaints for clients who want a professional to take care of it and who want to make sure they’re compensated properly. We do that for our clients on a no win, no fee basis.

“Currently, the FCA are consulting on an industry-wide review, which would require firms to address the transfer advice they gave and any losses caused. If the review goes ahead, the current proposal is that it will only include those who transferred between March 2017 and March 2018. This is unfortunate and leaves out many Northern steelworkers who transferred before that period.

“The team and I have become really passionate about putting right some of the injustices that went on here. It’s crunch time now and we want to make sure, as far as we can, that no one misses out.”

Contact our pension mis-selling specialists today

If you think you have been mis-sold a pension call 0800 422 0221 or request a free call back.