Government concede victory to unions over pension discrimination for over 4.1 million public sector workers

Stephen Barclay, chief secretary to the Treasury. Pic Credit: gov.uk

Judicial review forces ministers to open negotiations and defer major changes to pension schemes until 2022

Steve Barclay, Chief Secretary to the Treasury,chose a heavy news day today to slip out an announcement that the Treasury had finally given way to the courts and dropped pension discrimination against 4.1 million workers in Whitehall, the NHS,teachers, prison officers and firefighters and ambulance staff .

This came after losing legal battles to the FBU firefighters union, the GMB, the PCS Whitehall union and the Prison Officers Association over what was seen as age discrimination over cuts to their workplace pensions.

The announcement means that terms offered to staff will revert back to the original position – and that includes a lower retirement age – until 2022 and everything is up to grabs during fresh consultations.

£2.4 billion in pension surpluses

It could also mean that some £2.4 billion at present held in pension surpluses, particularly in Whitehall, may have to be redistributed back to the workers in reduced pension contributions or better benefits.

The sting in the tail is that the government want the costs of the victory won by the FBU at the Court of Appeal – which scrapped a discriminatory system that put younger people employed at a disadvantage – should be taken out of the pension surpluses.

The story of the FBU victory appeared in an article in December on this blog.

Any such moves are to be fiercely resisted by the unions. As one GMB official put it: ” We are not going to accept we should pay when we won the argument and the government lost.”

“They knew they were wrong”

Rehana Azam, GMB National Secretary said: 

“It’s welcome that Ministers have in the face of sustained pressure finally U-turned on the pause they imposed on the drawing down of pension benefits. Their indefensible decision has left public sector workers facing financial hardship. 

“GMB has long campaigned for the lifting of the benefits pause the Government unilaterally imposed on our members without consultation. Hard-working public sector workers should now get what they’re owed. 

“The Government has had to make a U-turn because they knew they were in the wrong and were poised to lose the Judicial Review GMB and others had brought against them.  

“Any suggestion that it should now be public sector workers who now bear the costs of Ministers’ discriminatory errors will be fiercely resisted. GMB will not stand by if the Government intends to break its word and force public servants to pick up the bill for its own mistakes. “

The timing of the climb down is interesting as it comes a week before the court of appeal hears the case against raising the pension age from 60 to 66 without proper notice brought by BackTo60 on behalf of 3.8 million women demanding full restitutionb for the loswt money.

The GMB which led the charge over part of the fight is 100 per cent behind the 50swomen and their cause to get their money back.