UK pension deal will hit NHS budget

Frontline NHS services will be hit if the Scottish Government does not bring in increased contributions for public sector pensions, the Health Secretary has warned.

Nicola Sturgeon said the health budget in Scotland would be cut by over £50m in 2012-13 if the Scottish Government refuses to implement the UK government’s pension reforms.

The controversial changes, which raise both the amount public sector workers must pay into their pension, and the age of retirement as well as introducing career-average pensions, resulted in major industrial action in November.

Ms Sturgeon, speaking at Holyrood’s Health Committee yesterday on the changes to the NHS scheme in Scotland, said: “I certainly recognise from the number of people here in the public gallery the strength of feeling over this issue.”

She said the Scottish Government had “repeatedly made clear” its opposition to increasing contributions “both at this time and this way”.

Chief Secretary to the Treasury Danny Alexander wrote to Finance Secretary John Swinney last year, stating that delays in implementing the pension changes would impact on the Scottish Budget.