UK Government Guarantees Openreach Pensions

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The British Government has agreed to protect the pensions of 32,000 employees which will make up the new legal entity of Openreach.

Ministers today proposed an amendment to the Digital Economy Bill introducing power to maintain the ‘Crown guarantee’ pension plan for the BT employees, who are crossing over to Openreach.

Secretary of state for culture, media and sport Karen Bradley said: “The legal separation of Openreach is important for delivering better broadband for consumers throughout the UK.

“A more independent Openreach which treats every broadband provider fairly should increase investment, bolster competition, and help give the country the connectivity it needs.

“This amendment clears a hurdle identified by Ofcom by allowing the Government to maintain pension protections for BT Pension Scheme members who transfer to Openreach. It will help secure the voluntary separation of BT and Openreach and provide peace of mind to affected workers.”