Tuesday, July 26, 2011

Lansley's surprise support for UNISON pensions campaign

UNISON’s campaign against the government’s pensions’ proposals got surprise backing this weekend from Health Secretary Andrew Lansley, after a letter he wrote to the Treasury was leaked to a national newspaper. In the letter, Andrew Lansley warns that the proposals are ‘inappropriate’ and ‘unrealistic’, and would hit women particularly hard. He reiterated one of the union’s big concerns, that putting contributions up would force people to leave the schemes and rely on benefits when they retire – storing up a massive bill for the taxpayer. Dave Prentis, UNISON General Secretary, said: “Even Tory ministers are waking up to how unjust, unreasonable and unworkable their own party’s proposals for public sector pensions are. Ever since the government came up with these plans, UNISON has been warning that people will leave the schemes if they are forced to pay more in contributions. “Health workers and local government staff already pay between five and eight percent of their salary into their pension. Stuck on a pay freeze and with inflation high, it would be impossible for many to afford more. “Paying into the pension scheme is the best way for workers to save for their retirement – the alternative is relying on means-tested benefits - at huge cost to the public purse.“The attack on pensions has nothing to do with affordability – it is based on ideology. Independent studies have shown the schemes are affordable and sustainable for the long term. In the health scheme, £2 billion more goes in than out every year. The Treasury would use any increase in revenue to plug the deficit – it will not go towards pensions.”

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