Unions say strikes to go ahead despite new pensions offer

Unions are pressing ahead with plans for the biggest strike in a generation despite a new government offer on public sector pensions described as the “chance of a lifetime”.

Unison is expected to announce the result of its ballot of more than a million workers today and other unions will follow suit in the coming weeks, raising the prospect of a huge walkout on 30 November which will disrupt schools, courts, hospitals, councils, driving exams and other public services.

Hours after receiving the details of the new offer from Chief Secretary to the Treasury Danny Alexander and Cabinet Office minister Francis Maude, union leaders said they welcomed the proposed changes but they were not enough to call off the planned industrial action.

TUC general secretary Brendan Barber said there were still “major areas of concern” over the government’s proposals, which will lead to increased pension contributions and later retirement.

Ministers warned that the offer could be withdrawn if there was no agreement reached by the end of the year and replaced with less generous arrangements.

Mr Alexander said: “I reserve the right to reconsider whether these enhancements are appropriate under circumstances where agreement is not reached.”

The Liberal Democrat minister said the offer was the “best we are going to get” in terms of money, although he believed there was a “lot more” to talk about over how the changes will affect pension schemes.

Mr Alexander said the new offer means future pension schemes will be based on 1/60th of average salary accruing for each year worked, rather than 1/65th – an 8 per cent increase on the previous offer.

The minister said that he had listened to the argument that those closest to retirement should not have to face any change, announcing that no-one within ten years of retirement will see any change over when they can retire, nor any decrease in the amount of pension they receive.

He also announced that no further changes would be made for 25 years if an agreement could be reached.

“I believe this package is affordable. I believe it is also fair, not just to public sector workers, but delivers significant long-term savings to taxpayers who will continue to make a significant contribution to their pensions,” he said.

But the TUC’s Public Services Liaison Group said: “All the unions have indicated throughout this process their determination to reach a negotiated settlement on all these issues.

“That remains the position and unions will engage intensively in the coming weeks. But unless and until further real progress is made and acceptable offers are made within those negotiations, unions remain firmly committed to continuing their preparations for the planned day of action on 30 November.”