Pension contributions rise goes ahead in April

Ministers were accused of being “unnecessarily provocative” and of imposing the increase for some workers, but a business leader said public-sector pensions remained “incredibly generous”.

Up to two million workers went on strike last month in protest at the pension changes. Intensive talks have since been held to try break the deadlock.

Civil service union Prospect condemned the decision to go ahead with raising contributions. Officials said this meant that increases ranging from 1.2 per cent to 2.4 per cent for civil servants were being imposed in the year from next April, which they described as a “blatant tax”.

Most teachers will pay more under the changes, which ministers said were part of 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 in 2012-13, are part of the wider £2.8 billion savings from public sector pensions by 2014-15 announced in last year’s Spending Review, which will see public sector workers pay an average contribution rise of 3.2 per cent.

Cabinet Office Minister Francis Maude said: “We have listened carefully to the concerns raised, but feel the proposal is still the fairest approach for civil servants and does most to protect the lowest paid.”