Family Extracted £77m in Dividends as Retirees Face Reduced Incomes

  • Wilko family under pressure to fill £70m pension deficit
  • Family extracted £77m in dividends over the past decade
  • Pensioners may lose bulk of what they are owed unless Wilkinsons or PPF fills gap
  • GMB Union’s national officer calls family’s actions ‘an absolute disgrace’
  • PPF assessing scheme to potentially bail out pension plan

The Wilkinson family is under pressure to pay £70 million to fill the pension deficit of collapsed retailer Wilko, according to This is Money. Amalgamated Holdings Wilkinson Limited (AHWL), Wilko’s ultimate parent company, has no plans to contribute as its directors, including Lisa Wilkinson, claim they have no obligation since AHWL was never the sponsoring employer. This comes after it was revealed that the family extracted £77 million in dividends over the past decade. With debts reaching £625 million at the time of collapse, Wilko’s pension fund faced a deficit, affecting over 1,000 workers yet to retire who may face reduced annual incomes for life. John Mann, former Labour MP and Treasury Select Committee chairman, criticized Wilkinson’s comments, calling the family ‘the new unacceptable face of capitalism.’ GMB Union’s national officer, Nadine Houghton, described their actions as ‘an absolute disgrace.’ Only £20 million of the deficit is secured against Wilko’s assets, meaning retirees may lose most of what they are owed unless the Wilkinsons supply the remaining £50 million or the Pension Protection Fund (PPF) steps in. A PPF spokesperson said they are working with The Pensions Regulator and scheme trustees to ensure the best outcome for members.

Factuality Level: 8
Factuality Justification: The article provides accurate and objective information about the situation of Wilko’s pension fund deficit, the family’s response, and the potential involvement of Pension Protection Fund (PPF). It includes quotes from relevant sources and does not include irrelevant or sensational details.
Noise Level: 3
Noise Justification: The article provides relevant information about the Wilko’s pension deficit and the family’s response, but it lacks in-depth analysis or exploration of broader issues related to corporate responsibility and pension fund management.
Financial Relevance: Yes
Financial Markets Impacted: Pension funds and Wilko’s creditors
Financial Rating Justification: The article discusses the financial situation of Wilko, a retailer that collapsed with significant debts and pension fund deficit, affecting its workers’ retirement incomes. This impacts pension funds and potentially Wilko’s creditors who may not receive full payment on their claims.
Presence Of Extreme Event: No
Nature Of Extreme Event: No
Impact Rating Of The Extreme Event: No
Extreme Rating Justification:

Reported publicly: www.retailsector.co.uk