In a written Parliamentary statement, the Secretary of State for Work and Pensions, John Hutton, has confirmed that the improvements to the Financial Assistance Scheme announced in the Budget statement on 21 March 2007 are the result of the government's reflections following the High Court's decision in R (on the application of Bradley and others) v Secretary of State for Work and Pensions [2007] EWHC 242 (Admin).

The extended FAS will ensure that the members of affected schemes receive benefits that total at least 80% of their accrued core pension rights. The cap on compensation will be increased to £26,000 a year, and the rule excluding those whose FAS payment would be less than £10 a week will be abolished. The government's appeal against the Bradley decision will proceed, but the changes to the FAS will stand, irrespective of its outcome.