Industry bodies lobby for legislative change

Plumbing Pensions UK (PPUK) and Snipef said they are lobbying for legislative change to protect their subscribers.

They say it was never intended to push members into the corner in which many find themselves and insist they want to see the law changed.

Chief executive Kate Yates said: “Section 75 is applied to multi-employer schemes like this all over the UK. The plumbers in the scheme are not connected with each other.

“In the past, some companies tried to walk away from schemes, so an exit charge was applied by the UK government in 1997. The calculation for this was quite straightforward.

“In 2005, the calculations were changed and there are real problems. One of these is orphan liability, which

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It isn’t fair for the subscribers, many of whom are small familyrun firms. PPUK CHIEF EXECUTIVE KATE YATES

didn’t need to be paid in the past. The law says that now, subscribers must contribute towards paying this.”

Ms Yates said she believed the bills now plaguing plumbers are an “unintended consequence” of the legislative adjustments 14 years ago.

“We’ve been lobbying for the government to change the law. It isn’t fair for the subscribers, many of whom are small family-run firms who have always tried to do the right thing.

“Now, they’re at risk of losing out but the government is wary of changing the law for plumbers in case it affects other schemes.”

Snipef insists it is also battling to alter the law.

CEO Fiona Hodgson said: “Snipef is concerned about the potential impact on our members of the liabilities arising from the Industry Pension Scheme.

“We have been working with a pensions lawyer to provide clarity around the potential impact on our affected members.

“Snipef provides regular communications to ensure affected members understand the complexity of the situation and the legislative easements that may be available to them.

“However, we strongly urge all affected employers to seek professional advice regarding their individual circumstances.

“PEAG is a separate organisation to Snipef. Snipef is concerned about the impact of the punitive legislation on our members, and affected employers across the industry, and have regular dialogue with PEAG.”