We wish to correct an important error made in the Daily Telegraph article, namely:

“Mr Looney and his former management team are facing claims they underfunded BP’s pension scheme, which has led to a 17pc drop in members’ income.”

The BP Pension Fund has a c. £5 billion surplus and no additional funding from the Company to the Pension Fund was required to prevent the 11% erosion in the value of the pension that occurred in 2021 and 2022.

Why does BP Pension Group refer to both an 11% and 17% loss in value of the BP pension

In the two years, 2021 and 2022, failure to increase pensions in line with RPI has meant BP pensions reduced in value by 11% in real terms.

RPI inflation has increased further in 2023. It means, that as things stand at end September 2023, the pensions received by the members of the BP Pension Fund have fallen in value in real terms by approximately 17% in total.

When the Trustees commence their review of an increase for 2023 – we expect them to take full account of the loss of value in the pension in the full years ending December 31 2021, 2022 and 2023.

Issued on behalf of the BP Pensioner Group

Website: https://bppensionergroup.org/
Further Information email: contact@bppensionergroup.org