Pensions reform going ahead in spite of disagreement

Ministers made clear they had made a final offer, saying it was a fair deal for workers and the taxpayer, which would save billions of pounds in the coming years.

Chief Secretary to the Treasury Danny Alexander announced that heads of agreement – a non-binding understanding over the issues involved – had been reached with most unions during lengthy negotiations covering local government, NHS, civil service and teaching pension schemes.

But a number of unions said they would not be signing up at this stage, the biggest civil service union took legal advice over claims it was “excluded” from talks, and a last-minute row blew up over the local government scheme.

The GMB said it would reconsider its position after new conditions were laid down in a letter from the department run by Local Government secretary Eric Pickles.

Mr Alexander said later that the letter had been withdrawn and a replacement would be issued.”

He added that the changes to pensions delivered the Government’s key objectives of amending them to a career average arrangement, leading to public sector staff working longer before they receive a pension and paying higher contributions.

However the Public and Commercial Services union said it was taking legal advice over being “excluded” from the civil service talks. It said the Government had a legal duty to include all unions under the 2010 Superannuation Act.

Cabinet Office Minister Francis Maude said the Government had fulfilled its obligations. Furthermore, the future of the teachers’ pension scheme remained unclear after some unions agreed to take the offer to their members and others held off, while the GMB, Unison and Unite said that in light of confusion over the local government letter, they were suspending their agreement.