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

Erase Assistant Team Manager

Durham County Council
Grade 10 £38,220 - £41,771
Are you passionate about improving outcomes for teenagers at risk of exploitation, missing episodes and harm outside the home?   Durham Children's Ser Durham
Recuriter: Durham County Council

Active Travel Connectivity Officer

Durham County Council
Career Graded 8 - 10 - G8 £32,597 - £36,363 / G9 £35,412 - £39,152 / G10 £38,220 - £41,771
An exciting opportunity has arisen for an Active Travel Connectivity Officer within our Sustainable Travel and Advertising Team, supporting the delive Durham
Recuriter: Durham County Council

Headteacher

Durham County Council
£75,049- £86,803
Permanent Contract, Full Time Required to start January 2027. N.O.R. 349 (including Nursery)   Are you an exciting, dynamic and outstanding leader wit Seaham
Recuriter: Durham County Council

Executive Director for Place

Wokingham Borough Council
£148,609 per annum, plus benefits
As our Executive Director for Place, you will lead an outward looking and forward-thinking place-shaping agenda. Wokingham, Berkshire
Recuriter: Wokingham Borough Council

Service Director

South Gloucestershire Council
£100,289 to £109,445 per annum
South Gloucestershire is changing things for good. Gloucestershire
Recuriter: South Gloucestershire Council
Linkedin Banner