View more on these topics

Labour slam Govt over public sector pension negotiations

Labour have slammed the Government for announcing in the press its plans for increasing contributions to public sector pension schemes while negotiations with unions are still going on.

Despite the fact the broad parameters of the today’s proposals were flagged up by the Treasury last week, Shadow Treasury chief secretary Angela Eagle says the Government is more interested in provoking confrontation with the unions than engaging in sensible negotiations.

This morning, the Government set the detail of proposals to increase contributions to public sector pensions from April by between 0.6 per cent and 2.4 per cent of pay depending on earnings. Further increases are expected before 2015 though the Treasury says top earners will see the maximum increase which will be capped at 6 per cent of pay.

The Government’s proposals were leaked ahead of their official release to the Daily Telegraph.

Shadow Treasury chief secretary Angela Eagle says: “Making arbitrary announcements through the newspapers in the middle of talks with the trade unions will do nothing to avoid the industrial action nobody wants to see. By one again acting in a rash and irresponsible manner, ministers seem to be more interested in provoking confrontation with public sector workers than sensible negotiation.”

The Government is currently negotiating with unions about wider changes to public sector pensions based on the Hutton Commission’s proposals which could see final salary schemes replaced with career average schemes and see the public sector retirement age brought in line with the state pensions age.

Announcing the proposals this morning, Treasury chief secretary Danny Alexander said the proposals were the start of a process.

He said: “We will continue to discuss with unions how to achieve the required savings in the following two years as well as the longer term reforms proposed by Lord Hutton.”

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

There is one comment at the moment, we would love to hear your opinion too.

  1. what ive seen on tv today i cannot understand why the solid gold pension people are up in arms stick more money in the pension pot so you can retire knowing you contributed equally we cant afford your sg pension its why it been discussed i blame labour for this when they where in power and ime labour supporter what a right mess this is

Leave a comment

Close

Why register with Money Marketing ?

Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

News & analysis delivered directly to your inbox
Register today to receive our range of news alerts including daily and weekly briefings

Money Marketing Events
Be the first to hear about our industry leading conferences, awards, roundtables and more.

Research and insight
Take part in and see the results of Money Marketing's flagship investigations into industry trends.

Have your say
Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

Register now

Having problems?

Contact us on +44 (0)20 7292 3712

Lines are open Monday to Friday 9:00am -5.00pm

Email: customerservices@moneymarketing.com