Philip Green
Sir Philip Green agreed to rescue the BHS pension fund in February Reuters

Sir Philip Green may receive a £15m refund after agreeing to pay £363m to rescue the BHS pension scheme, according to Labour MP Frank Field.

The veteran MP, who was among those who led the inquiry on the collapse of the former high street retailer, has urged the tycoon to hand the refund to BHS pensioners, given they will receive approximately 88% of the value of their original benefits.

Furthermore, Field warned there was a "great deal of variation", with 26 members of the pension scheme receiving less than 80% and 1,481 collecting between 95% and 100%. Another 16 former workers, whose benefits would have been capped had the scheme entered the Pension Protection Fund (PPF), will receive more, however.

"I hope Sir Philip will recycle any refund back into the scheme as BHS pensioners will still be facing cuts in the benefits for which they paid," Field said.

"It is also clear that Sir Philip prioritised his loyal senior managers, who have had the PPF cap on high pension benefits completely removed.

"That measure was designed to encourage those in positions of influence to urge prudence and responsibility. I would be worried if TPR [the pension regulator] was content to see it jettisoned as a matter of course. Those who do far less well out of the settlement are the ordinary staff of working age, many of whom lost will have lost their jobs as well."

Last month, the former BHS owner said he had made a "voluntary contribution" of up to £363m to "enable the trustees of the BHS pension schemes to achieve a significantly better outcome" than the schemes entering the PPF.

The 88-year-old firm collapsed in June last year, owing more than £1.1bn to various creditors, including a £571m pension deficit, £358m to landlords and £48.5m to suppliers.

Green has come under intense scrutiny for his role in the collapse of BHS, given that he took some £400m in dividends out of the company during his 15-year ownership. His decision to sell to embattled retailer to Dominic Chappell, a man with no proven business background who had been declared bankrupt three times, has also attracted criticism.

Prior to its demise, Green took £400m out in dividends from the beleaguered retailer before selling it on to Chappell for £1 in March 2015.