Government To Push Through Pension Reforms Despite Failure To Agree With Unions

Will There Be More Of This?

The Government has confirmed it is pressing ahead with raising pension contributions next year for teachers and civil servants even though there is no agreement with unions.

Up to two million public sector workers went on strike last month in protest at the controversial pension changes, and intensive talks have since been held to try to break the deadlocked row.

The Education Department and the Cabinet Office announced that changes from next year would go ahead, although further talks will be held about future arrangements. Unions attacked the announcement, saying increased contributions were being imposed without agreement.

Most teachers will contribute more under the changes, which ministers said were part of the Government's long-term reforms to control the increased costs of people living longer and to "re-balance" the contributions paid by scheme members and taxpayers.

The changes, which will save £314 million from the teachers pension scheme next year (2012-13), are part of the wider £2.8 billion savings from public sector pensions by 2014-15 which the Chancellor announced in last year's Spending Review, which will see public sector workers pay an average contribution rise of 3.2%.

Cabinet Office Minister Francis Maude said: "The Government is committed to ensuring that civil servants have access to pensions that are amongst the best available. We announced at the 2010 Spending Review that as well as reforming civil service pensions for the long term, the Government would increase member contributions to pension schemes from April 2012.

"We have listened carefully to the concerns raised, but feel the proposal we set out in July is still the fairest approach for civil servants and does most to protect the lowest paid."

The Prospect union condemned the Government's announcement, which it said followed a "sham" consultation exercise that closed in October.

Deputy general secretary Dai Hudd said: "Today is the day the reality of the Government's policies bites. We now know what the impact on our members in 2012 will be. What offends them most is that none of these increased contributions will go into the pension schemes or contribute to reducing schemes' liabilities. This is a blatant tax on civil servants.

"Don't forget too that this is just the first tranche - members will face increases in 2013 and 2014 as well, all of it also going straight into the Treasury's coffers."

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