Mark Whitehead 01 October 2018

Labour warn of £2.7bn NHS cuts due to pension bungle

Labour warn of £2.7bn NHS cuts due to pension bungle image

The Government is planning to make £2.7bn of further cuts to the NHS before next election because of a bungle over pensions, according to the Labour Party.

It says new analysis from the House of Commons library shows the shortfall is the result of a Government 'miscalculation' which underestimated the pension costs of all public sector workers by as much as £4bn a year.

The Government has offered to cover departments’ additional costs for one year only, leaving the NHS to meet up to two years’ worth of additional pension costs totalling £2.7bn before the next election.

Labour says this is the equivalent of the salaries of 61,912 nurses.

The party says it is the second time that the Government has asked departments to make cuts to cover a mistake in pension calculations.

Labour says the initial announcement was 'snuck out' in a statement late on a Thursday when Parliament was not sitting, meaning that billions of pounds in further austerity measures have not received parliamentary scrutiny.

Peter Dowd, Labour’s shadow chief secretary to the Treasury said: 'The Chancellor must immediately own up and commit to meeting these extra costs, not just push them on to slashed and struggling public services.’

A Government spokesperson said: 'We are giving the NHS the funding it needs to meet growing pressures and deliver the world-class care that we all want and expect.

'Under our plan, the NHS will receive increased funding of more than £20bn per year by the end of 2023/24. We will also provide an additional £1.25bn each year to cover rising pensions costs for NHS staff.'

SIGN UP
For your free daily news bulletin
Highways jobs

Principal Energy Engineer

Surrey County Council
£45,734 - £51,725 per annum
Do you have experience in working with delivering carbon reduction measures into a range of building projects? Surrey
Recuriter: Surrey County Council

Wellbeing and Independence Practitioner - Safeguarding

Essex County Council
£27203 - £31370 per annum
Please note, this role is a Fixed Term Contract until the end of March 2022. With us, you can achieve more - for yourself as well as those you work England, Essex, Chelmsford
Recuriter: Essex County Council

Chief Fire Officer/Chief Executive

Essex County Fire & Rescue Service
c. £150,000
Are you ready for an exciting and rewarding opportunity Essex
Recuriter: Essex County Fire & Rescue Service

Housing Development Manager

City of York Council
£36,476 to £41,830 per annum
Do you want to play a key part in the delivery of “the UK’s most ambitious council-led housing programme in a generation”? York, North Yorkshire
Recuriter: City of York Council

Resettlement Support Workers

City of York Council
£21,989 to £24,447 per annum
We are looking to recruit two individuals to provide high quality support to those living in the resettlement hostel for young people aged 16-25 York, North Yorkshire
Recuriter: City of York Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue