Firm’s pension scandal payout drops to £49m

The financial regulator has said the total payout to British Steel Pensions Scheme members impacted by a mis-selling scandal is set to be more than £20 million less than previously expected.

The Financial Conduct Authority (FCA) said more than 1,000 former British Steel Pension Scheme members are set to receive redress payments.

It said the bill to compensate workers will now be around £49m.

Steelworkers will receive an average redress payment of around £45,000, compared with a previously predicted payout of £60,000.

The reduction was because less money was needed to fund the compensation following an improvement in annuity rates.