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

Children’s Social Worker

Cheshire East Council
£39,000 - £41,771 per annum
As a Children's Social Worker, you'll work directly with children, families and partner agencies to safeguard children, promote their wellbeing Cheshire
Recuriter: Cheshire East Council

School Crossing Patrol

North Yorkshire Council
£13.28 - £13.92 per hour
Duty times
Recuriter: North Yorkshire Council

Travel Trainer (Ealing)

Essex County Council
£25959.0000 - £28621.0000 per annum
Travel Trainer (Ealing)Permanent, Full Time£25,959 up to £28,621 per annumLocation
Recuriter: Essex County Council

Loader

North Yorkshire Council
£25,614 - £26,847
To work as a team to ensure services are completed and responsive to external factors – breakdowns, blockages etc. Skipton, North Yorkshire
Recuriter: North Yorkshire Council

Natural Health Engagement Officer

North Yorkshire Council
£29,064 - £31,537 per annum, pro rata
As Natural Health Engagement Officer, you will help deliver a range of health and wellbeing programmes that encourage people of all ages Pateley Bridge, Harrogate
Recuriter: North Yorkshire Council
Linkedin Banner