Reforming the Local Government Pension Scheme in England and Wales (LGPS) could save taxpayers around £10bn, Reform UK’s deputy leader has claimed.

However, critics argue Reform UK’s approach to LGPS reform amounts to funding one public service by raiding another, a policy branded as a ‘house of cards.’

Speaking at a party conference, Richard Tice MP said that local government funds are underperforming and charging ‘egregious’ fees, adding that there was a ‘gravy train culture’ at the LGPS.

Tice told the conference the party would not touch the ‘sacrosanct’ existing rights or benefits of employees but said they would be urging local pension committees to ‘change course’.

He added that the party would launch its own branded pool manager and deliver savings of £8-10bn, which could be used to deliver a ‘world-class social care system’

UNISON general secretary Christina McAnea accused Reform UK of attempting to force council staff onto inferior pensions, which would impact retired workers and exacerbate the recruitment crisis in local government.

‘No one should be looking to fund one essential public service by raiding another. That isn’t a plan, it’s a house of cards.’

‘The country desperately needs a world class social care system but making council staff poorer and elderly people more vulnerable isn't the way to deliver it,’ McAnea continued.

‘The sums involved appear to have been plucked out of the air by Reform UK. The latest evaluations of the scheme are expected to show it’s well managed with healthy returns,’ she added.

Zoe Alexander, director of policy at Pensions UK, said: 'The Local Government Pension Scheme is one of the world’s most successful pension schemes, delivering pension payments to millions of workers across the country. It has consistently demonstrated financial resilience and operational stability throughout regular periods of rapid change, capitalising on economies of scale and a collaborative culture.'

She added: 'The latest valuation figures show that the LGPS delivered an aggregate return of 8.9% in 2024 with average funding level of 108%. The next valuation is expected to show this position even further improved. Significant improvements in funding over this valuation cycle are already expected to result in reduced employer contributions.'