The matter was also raised with Pensions Minister and Swansea West MP Torsten Bell at a meeting of the Commons Work and Pensions Committee earlier this month.
Committee chair Labour MP Debbie Abrahams asked: “I cannot understand the reason for not making a decision to enable them to spend the last few years of their life in some comfort, can you give us any hope around this?”
Bell replied: “It does need to be looked at properly.
“It needs to be considered in the round of those wider impacts, as all public policy matters are, but I am absolutely aware of the issues.
“I am also aware of the average age of the people that are affected.
“The best thing I can do is to say that I am aware and I am looking at it, but the public finance implications are more complicated than you set out.”
In response, concerning its £13bn surplus, the PPF said it deliberately had what it called a reserve to protect it from future claims or in case people live longer than expected.
The Department for Work and Pensions said it recognised members’ incomes may have been eroded in recent years.
“However, these are complex matters requiring a balanced approach,” it said.
“The government is continuing to consider what we have heard from the Pension Protection Fund and Financial Assistance Scheme members on this issue.”