William Eichler 01 September 2025

Reform UK plan to overhaul LGPS sparks backlash

Reform UK plan to overhaul LGPS sparks backlash image
Reform UK deputy leader Richard Tice MP © Fred Duval / Shutterstock.com.

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.'

SIGN UP
For your free daily news bulletin
Highways jobs

Rehabilitation Officer Vision Impairment

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 - £52,767
Rehabilitation Officer Vision Impairmen... Twickenham, London
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Residential Worker

Wakefield Council
£32,061.00 to £34,434.00, Grade 7.
We are looking for a Full-Time Children's Residential Worker to join our team at Clarence Children's Home in Wakefield Wakefield, West Yorkshire
Recuriter: Wakefield Council

Community Development Officer

The Royal Borough of Windsor & Maidenhead
£32,962 - £36,791 per annum
We have an exciting opportunity for a Community Development Officer to join us! Maidenhead, Berkshire / Multiple
Recuriter: The Royal Borough of Windsor & Maidenhead

Telecare Responder

Durham County Council
Grade 6 £28,142 to £31,022 per annum
Could you respond to emergency calls, gain access and administer first aid if necessary? Could you assist in the provision of an equitable Countywide Durham
Recuriter: Durham County Council

Social Worker - Assessment & Intervention, Mid Team

Essex County Council
£34902.0000 - £50081.0000 per annum
Social Worker - Assessment & Intervention, Mid TeamPermanent, Full Time£34,902 to £50,081 per annum Location
Recuriter: Essex County Council
Linkedin Banner