Sir Philip Green to pay £363m into BHS pension

Tycoon says contribution will better outcome for members

Sir Philip Green has agreed to pay £363 million to settle the pension scheme of collapsed retailer BHS, following months of public outrage.

The billionaire tycoon said the amount, less than the £571 million deficit the firm was left with when it went bust in April last year, represents a “significantly better” outcome than if the scheme entered the Pension Protection Fund (PPF).

The collapse of the high-street giant impacted 11,000 jobs and around 19,000 pension holders.

Sir Philip said: “I have today made a voluntary contribution of up to £363 million to enable the trustees of the BHS pension schemes to achieve a significantly better outcome than the schemes entering the PPF, which was the goal from the outset.”

But Frank Field, the Labour MP who co-chaired a parliamentary inquiry into BHS’s demise and has acted as Sir Philip’s chief tormentor, warned: “It doesn’t end here.”

He said: “I think there are a lot of other issues which are not solved by this which we will obviously be looking at and the courts and everybody else will be. It’s not justice, but it is a milestone.”

News of the settlement comes after the Topshop owner was grilled by MPs over the sale of the chain, which he owned for 15 years before offloading it for £1 to former bankrupt Dominic Chappell in 2015.

The fallout from the chain’s collapse sparked a lengthy parliamentary inquiry and left both its high-profile former owners potentially facing a criminal investigation.

But Sir Philip said yesterday’s settlement brings “this matter to a conclusion” and apologised to the affected pensioners.

The settlement will allow pensioners the option to receive entitlements at the level they were promised by the BHS scheme. Current pensioners who have received lower pension benefits since March 2016, because of the PPF level of compensation being paid, will now have the opportunity to receive lump sums.

Lesley Titcomb, the chief executive of the Pensions Regulator, said: “The agreement we have reached with Sir Philip Green represents a strong outcome for the members of the BHS pension schemes. It takes account of the interests of both pensioners and the PPF, and brings a welcome level of certainty to present and future pensioners.”

Picture: PA. Players taking part in the Royal Shorvetide football match yesterday, which occurs annually on Shrove Tuesday and Ash Wednesday in the town of Ashbourne. It has been played since at least the 12th Century with the two teams that contest the match known...