Government Declares 'Fresh Start' on Public Sector Pensions

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Published: 7 Apr 2005

Secretary of State for Work and Pensions, Alan Johnson, has declared the government's wish to make 'a fresh start' on pensions. Find out more here...

The TUC has welcomed as a positive development a statement by Alan Johnson MP, Secretary of State for Work and Pensions, that the government needs to take the time to get pensions right, and that to do this a 'fresh start' needs to be made on 'discussions with the Trade Unions'.

The Secretary of State's statement was made in a letter to TUC General Secretary, Brendan Barber. In response, Mr Barber said:

"The major complaint by all the public service unions has been that changes - particularly on pensions age - are being imposed rather than negotiated. The government has clearly set a common policy for the public sector, but unions have not been able to discuss the policy as a whole with ministers."

Public sector unions met with the Secretary of State for Work and Pensions, Alan Johnson, and other ministers, at a Public Sector Pensions 'summit' on 31 March. Assistant director of Employment Relations & Union Services, Claire Sullivan, represented the CSP at the summit. Claire reports:

"We had a positive meeting where the Secretary of State reiterated the government's commitment to negotiation on all aspects of pensions, although he still stressed their commitment to raise the normal pension age (NPA) to 65. I told him of the CSP's strong preference for final salary (as opposed to a career average scheme), particularly with the introduction of Agenda for Change with its express intention of improving career pathways. I was also able to raise the issue of (many of) our members' rights to retire at 55 and the physical strain of the job. The results of the CSP's MSD (work-related musculoskeletal disorders) study support the fact that working to 60 is not an option for many, let alone 65. I also made the Minister aware of the CSP's willingness to work actively with employers at all levels to encourage flexibility around retirement age, where members were able to carry on for longer, but stressed to him that this should be voluntary and not part of a compulsory rise in the pension age."

Following the public sector pensions summit a joint statement was issued from the Secretary of State for Work and Pensions and TUC General Secretary, Brendan Barber. The joint statement can be downloaded by clicking on the link at the foot of this page.

The NHS trade unions have now written to health minister, John Hutton, welcoming the government's decision to make a fresh start and seeking an urgent meeting. The letter can be downloaded by clicking on the link at the foot of this page. Alan Johnson's 'fresh start' letter to the TUC can also be downloaded by clicking on the link at the foot of this page.

The NHS pension review consultation concludes this month.

For England and Wales the deadline for receipt of comments to the NHS Employers is 11 April.

For Scotland the deadline for receipt of comments to the Scottish Pensions Review Group is 25 April.  

For Northern Ireland the deadline for receipt of comments to the DHPSS is 30 April.

CSP members are urged to respond individually to the consultation and to send a copy of their response to the CSP. For more information on the NHS pensions review, including how to access the consultation documents and advice on how to lobby your MP, please see http://www.csp.org.uk/workplace/pensions.cfm.