Mark Whitehead 01 October 2018

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

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.'

Devolutions clean air dividend image

Devolution's clean air dividend

Jane Burston of Clean Air Fund argues that tackling air pollution is one of the clearest ways for local leaders to prove devolution can transform lives.
SIGN UP
For your free daily news bulletin
Highways jobs

Apprentice (HGV Technician)

Durham County Council
£15,434 per annum NMW in first year of apprenticeship
Earn. Learn. Qualify.   Do you want to earn while you learn, with the chance of progression once you qualify? Do you want the opportunity to grow, dev Durham
Recuriter: Durham County Council

Floor Layer

Durham County Council
£36,040 p.a. (Made up of £24,027 salary plus £12,013 p.a Interim Operational Allowance)
Durham County Council have an exciting opportunity for the role of a permanent Floor Layer working within Corporate Property and Land, Strategic Facil Durham
Recuriter: Durham County Council

Maintenance Manager

Durham County Council
£38,220 - £41,771
Highways Services are looking for a Maintenance Manager.  To assist in ensuring the timely completion of works operations so as to achieve the optimum Durham
Recuriter: Durham County Council

School Caretaker

Durham County Council
£24,796- £25,185 (Pro Rata)
Temporary Contract for one year. Part-Time, 20 hours per week, Mon – Fri, split shifts Working pattern of daily hours will be negotiated between the H Durham
Recuriter: Durham County Council

Catering Assistant

North Yorkshire Council
£13.28 - £13.28 per hour
We have an opportunity to join our award-winning Facilities Management catering team Wetherby, West Yorkshire
Recuriter: North Yorkshire Council
Linkedin Banner