Arcadia owner Philip Green has been accused of being up to his “old tricks” after reports emerged that he is looking to halve the pension scheme recovery payments from £50m to £25m, as part of a company “restructuring”.

Last month, Green sought approval from the Pensions Protection Fund (PPF) over a company voluntary arrangement, in a move that would see pension contributions slashed as well as a substantial number of store closures and job losses, according to Sky News reports.

Following the news, Work and Pensions Committee chair Frank Field has written to both The Pensions Regulator (TPR) and Arcadia Group Pensions Manager chair, Margaret Hannell, over concerns that Green is going to cut contributions to the scheme, which currently has a deficit of over £500m.

Commenting on the latest developments, Field said: “Philip was dragged to a costly out-of-court settlement with TPR, no more than he should have paid to his loyal employees’ pension scheme in the first place, no thanks to him and little to TPR.

“Even before the latest scandal over his treatment of colleagues and employees Philip had proven himself no knight of British retail - quite the opposite.

“Does he really think he’s going to get away with his old tricks again? Run the business down, pocket whatever cash is left, stiff the pensioners and sail off on the Lionheart leaving employees, pension schemes and his long suffering creditors in the lurch? Not if we have anything to do with it.”

Last week, in a response to a letter from Field, TPR said it had held face to face meetings with Arcadia Group Pension Schemes trustees and representatives from the company “during which the company’s position was discussed”.

TPR wrote: “The effective date of the pension schemes’ next valuations is 31 March 2019 and our interaction will continue and will include dialogue with both the trustees and employer group in relation to those valuations and related recovery plans.

“Where we feel it is important to do so we encourage schemes to engage with us ahead of their valuations being finalised and submitted.

“As you will be aware, we are unable to share specific information with the Committee about the pension schemes’ forthcoming triennial valuations and recovery plans as this is restricted information under section 82 of the Pensions Act 2004.”

In April 2017, Arcadia agreed to double the pension schemes’ deficit recovery contributions to £50m per year for 10 years.

The agreement was put in place after, in March 2016, the schemes were found to have asset values £993m less than the amount needed to secure all member benefits with an insurance company.

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