Pre-Budget Report 2009: APSE Analysis and impact on local government‏

http://www.unison.org.uk/images/home/pensions1009t.jpg The Association for Public Service Excellence (APSE) has produced a detailed analysis of the recent Pre-Budget Report of Chancellor Alistair Darling. It can be accessed on the APSE web site via the following link:
http://www.apse.org.uk/briefings/09/09-63%20pre%20budget%20report%202009%20analysis.pdf

As well as setting out the key issues such as Total Place, Infrastructure UK and yet more 'efficiency savings', the briefing flags up the serious implications of the Chancellor's ominous statement that ‘Public pensions need to be in broadly in line with those offered in the private sector. So by 2012 contributions by the State to public pensions for teachers, local government, NHS and the Civil Service will be capped – saving around £1bn a year. Public sector workers will make a greater contribution to the increasing value of pensions, with those earning over £100,000 paying more’

The briefing notes that ‘Broadly in line with those offered in the private sector’ could be viewed as a move towards defined contribution schemes as opposed to a defined benefit schemes and as such would de facto mean the closure of the current local government scheme to new starters.

The Government's stance smacks of the Taxpayers Alliance school of politics and if enacted will have serious implications for industrial relations in UK public services and political relationships between the affiliated unions and Labour. It would amount to a unilateral repudiation of the agreement on reform of public pensions upon which basis difficult agreements were reached over the past 5 years in order to retain defined benefits scheme whether career average or final salary schemes. We will know soon enough given that General Election manifestos will be published in the next few months.

The time to commence the campaign to defend our pensions is now.