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.'

SIGN UP
For your free daily news bulletin
Highways jobs

Chief Executive

National Association of Local Councils
£competitive
We are looking for an exceptional senior leader with a strong record of leading change London (Greater)
Recuriter: National Association of Local Councils

Social Worker

London Borough of Richmond upon Thames and London Borough of Wandsworth
£40,260 - £54,507
Social Worker£... London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanent, Full Time & Fixed Term, Full Time£46,861 to £52,068 per annum (full time equivalent)Location
Recuriter: Essex County Council

Customer Services Assistant - Dunmow Library

Essex County Council
Up to £25959.0000 per annum
Customer Services Assistant - Dunmow LibraryPermanent, Part TimeUp to £25,959 per annum (full time equivalent)Location
Recuriter: Essex County Council

Residential Childrens Homes Manager

Essex County Council
£55892.00 - £69241.00 per annum + + 8% on call allowance
Residential Childrens Homes ManagerPermanent, Full Time£55,892 to £69,241 per annum + 8% on call allowance Location
Recuriter: Essex County Council
Linkedin Banner