Bosses face jail over pensions in new ‘Philip Green laws’

BOSSES who recklessly mismanage pension funds face seven years in jail under a clampdown due to be unveiled by Work and Pensions Secretary Amber Rudd this week.

The new powers – dubbed ‘Philip Green laws’ – will also allow unlimited fines.

Last year the Topshop tycoon agreed to hand over £363million to save the BHS pension scheme following the chain’s collapse in 2016 that left a £571million deficit.

The shortfall saw an 18 per cent reduction in the pension pots of BHS workers, but no sanction for executives who had run the firm.

Now a new offence of ‘wilful or reckless behaviour in relation to a pension scheme’ will be unveiled by Ms Rudd amid a review of The Pensions Regulator’s powers.

Company chiefs deemed to have allowed deficits to escalate to unsustainable levels, risked jobs through chronic mismanagement or criminally stolen from company pension pots will face ‘the full force of the law’.

A Whitehall source said: ‘Tycoons who think they can get away with their hands in the till will learn the hard way.’

Since 2015, the Insolvency Service has applied to the courts to wind up 24 companies guilty of pension misuse. Some 3,750 victims lost £202million worth of contributions.

Last night, Labour called for Green to be stripped of his knighthood amid the continuing furore about his behaviour.