Laura Sharman 21 March 2016

Pension reforms will see '£650m stealth cut' to public services

Changes to public sector pensions, announced in last week's Budget, will see hundreds of millions cut from front line public services, according to research from the Liberal Democrats.

The analysis found that while plans to reduce the public service pension scheme discount rate will raise £2bn for the Treasury by 2020, the cost of administering the changes will be passed directly to employers.

The NHS alone will be left with unbudgeted costs of around £650m, while schools will be faced with £426m of costs.

Liberal Democrat leader Tim Farron said: 'David Cameron said he would do whatever it takes to fill the NHS black hole, and we've now discovered that actually means cutting £650m just to help the chancellor's budget-day balance sheet.

'George Osborne cannot pull the wool over people's eyes. Choosing to ask schools, hospitals, and forces to pay £2bn extra in pension contributions has a real cost, and vital services will have to pick up the bill.'

SIGN UP
For your free daily news bulletin
Highways jobs

Senior/Principal Regeneration Officer

Fareham Borough Council
£45,465 - £55,379
Our town centre regeneration is moving from planning to delivery, and we're looking for someone who wants to help make regeneration happen. Fareham, Hampshire
Recuriter: Fareham Borough Council

Director of Planning and Building Control

Royal Borough of Greenwich
up to £140,000
Our new director will play a key role at the heart of the Council’s ambitious agenda for place‐based growth and regeneration. London (Greater)
Recuriter: Royal Borough of Greenwich

Assistant Director, Strategic Property

Royal Borough of Greenwich
circa £120,000
This exciting property leadership role combines commercial, civic, and heritage asset management London (Greater)
Recuriter: Royal Borough of Greenwich

Chief Executive

Eastleigh Borough Council
circa £150,000
We embrace the opportunities presented by reorganisation and devolution across the region. Eastleigh, Hampshire
Recuriter: Eastleigh Borough Council

Corporate Director, Corporate Services and Section 151 Officer

Luton Borough Council
up to £160,170 per annum
We have delivered significant progress and stand on the cusp of a once-in-a-generation opportunity. Luton, Bedfordshire
Recuriter: Luton Borough Council
Linkedin Banner