Taxpayers Alliance gets it wrong on pensions

Commenting on the TaxPayers' Alliance report released today, which wrongly calculates that £1 in every £5 in council tax goes towards local government pensions, Heather Wakefield, UNISON’s head of local government, said: "This simply isn’t true. Actually, the local government pension scheme costs the taxpayer just 5p in every £1 paid in council tax. "Councils get only 25% of their revenue from council tax, 75% comes from other sources, including business rates and local government grants. "If the schemes were closed down, or people were priced out, they would be pushed onto means-tested benefits in their retirement. When dinner ladies, social workers and care staff retire, on average they will get just £4,000 a year, dropping to just £2,600 for women."The TPA should concentrate on getting their facts straight, rather than attacking sustainable and affordable schemes."

Cameron's economy speech

Commenting on David Cameron’s speech on the economy, UNISON General Secretary, Dave Prentis, said: “David Cameron claims he wants to create a fair economy, but we won’t take him seriously until he acts to stop bankers awarding themselves huge bonuses. “At the same time that Goldman Sachs staff are enjoying nearly £8bn worth of bonuses, the Government is freezing pay for public sector workers and axing jobs and vital services.“If Cameron really wants to create a fair economy he needs to tackle unemployment, stop savage cuts and invest in deprived communities.”

UNISON members back local government pensions talks

UNISON members in the local government pensions scheme this week voted to continue negotiating with the employers over potential changes to their pensions. More than 150 nationally elected activists in UNISON’s five sector groups representing the local government pensions scheme, gave their backing to the framework proposals for talks that the union’s negotiators have secured since November 30. Negotiations will now enter an intense phase, running until April 2012 – at which point members will be fully consulted on the final offer. Should talks fail, the union’s ballot remains live, leaving the option of more industrial action on the table. Heather Wakefield, UNISON head of local government, said: “This week, our elected activists representing members that save into the local government scheme, gave their unequivocal backing to the framework proposals for more negotiations that we have secured since November 30. “We have agreed some important principles for the talks, including no change to contribution rates until 2014, and a commitment to protecting the pensions rights of workers that have been outsourced or are under threat of privatisation. “Talks with the local government employers will now run until April 2012. Members will continue to be consulted at every stage – including when we have a final offer. But if talks should break down – our ballot means we can still take industrial action.” *The five sector groups include - Local Government, Community, Police and Justice, Water, Environment and Transport (WET), and Higher Education.

UNISON welcomes some justice for Lawrence family

(04/01/12) With today's sentencing of two men for the murder of Stephen Lawrence, UNISON welcomes a degree of justice for the Lawrence family.UNISON president Eleanor Smith said: "At last the Lawrence family have some justice. Their campaign – which is not over – has been both tireless and dignified."I am proud of the role that UNISON has played in giving the family its support."And she continued: "There can be no place for racism in our society – both of the overt kind demonstrated in the horrendous attack on Stephen, and the more covert, institutional kind unearthed by the inquiry into the original police investigation."We all have a responsibility to make sure every possible lesson can be learnt to honour Stephen's memory."

Decent social care must be funded through national insurance

UNISON, the UK’s largest union, today called for a national Social Care service properly funded through national insurance to tackle the growing crisis in elderly care. The call comes in the wake of demands for urgent action and fundamental reform to care and home help services from a broad coalition of government advisers, charities, unions and independent experts.The union has welcomed some of the proposals set out by the Dilnot Commission as a “step in the right direction” but warned that the commission’s recommendation of voluntary insurance, will not solve the problem of underfunding.Heather Wakefield, UNISON Head of Local Government said:“Social care is characterised by inadequate funding which has created an unfair and unsustainable system, leading to falling quality care. It’s time to take urgent action but voluntary insurance is not the answer. It will create a two-tier system of care – high quality care paid by insurance and low quality care underfunded by the state.“What is needed is a national Social Care service properly funded through national insurance to really tackle the growing crisis in elderly care. Without serious public funding there will be the disappearance of these services and an increase in private sector provision. This is not the way to ensure a personalised quality care service or develop a quality well paid care workforce for the future.”

Real pensions timebomb is in the private sector

UNISON, the UK’s largest union, today called on the government to take urgent action to protect private sector pensions, after a survey revealed a shocking number were being closed or watered down. With two thirds of private sector workers already shut out of saving for their retirement, action would also protect taxpayers from a spiralling means tested benefits bill. UNISON estimates that taxpayers already face a bill of up to £15 billion for supporting the millions of private sector workers who have not not saved for their retirement – the real pensions timebomb. Dave Prentis, UNISON General Secretary, said: “The real pensions timebomb is in the private sector. Already two thirds of these workers get nothing from their employers towards their pensions - this could cost the taxpayer billions in the future. The situation will spiral even further out of control, if more schemes are shut down and the taxpayer has to step in to cover the cost of supporting even more workers in their retirement. “The government must take urgent action to make sure more schemes in the private sector are not lost or weakened. The new regulations coming in later this year will be too little too late for many who will still have to rely on the state in retirement – the minimum contributions are insufficient to give people enough to live on in their old age.”

*Survey by the Association of Consulting Actuaries.

Local Government pensions framework to go ahead

A timeline and set of principles that provide a positive framework for negotiations on the local government pension scheme (LGPS), is back on track, said UNISON, the UK’s largest public service union, today. The move follows the withdrawal of a letter from Secretary of State, Eric Pickles and the issuing of a new letter, which the union says provides the basis to proceed to negotiations. Following lengthy talks, the principles have been jointly agreed by the Local Government Association (LGA), UNISON and the GMB.The framework will be subject to detailed discussions with UNISON’s senior local government members in the new year. Heather Wakefield, UNISON head of local government, said: “We are pleased that the agreement on principles and a timeline for more talks on the local government pensions scheme, are back on track. They have the green light from government, marking a major step forward in the dispute over public sector pensions. “We have always argued that as the local government scheme has funds worth more than £140 billion, it should be dealt with in a different way to the other Treasury backed schemes. “Following discussions with senior members in local government we hope to move towards detailed negotiations in 2012, where we can work out the very complex details of the new pension scheme.

Local government trade unions suspend agreement pending further talks

The local government trade unions, UNISON, UNITE and GMB, have today been alarmed by the response from Eric Pickles, to the joint proposal from the unions and the Local Government Association (LGA), for reforming the local government pension scheme. We understand the Secretary of State’s response has subsequently been withdrawn. In light of this confusion, we therefore suspend our agreement, and are now seeking an urgent meeting with the government to establish an agreed way forward. Heather Wakefield, UNISON head of local government, said: “The announcement today from Eric Pickles undermines trust and confidence in the relationship with the government over negotiations surrounding the Local Government pensions scheme. “In order to re-establish confidence, and a way forward, we hope that ministers will meet us as a matter of great urgency in order to get negotiations back on track. “We are disappointed that a positive way forward appears to have been undermined in this way, and hope that government, the LGA, and the trade unions, can reach agreement on a way forward.”

Warning bells should sound in Westminster

Commenting on today’s unemployment figures, showing a rise to 2.64m between August and October, UNISON General Secretary, Dave Prentis, said:“This is a seriously bleak midwinter, as 128,000 more workers join the millions already on the dole queues. “Every month, as unemployment rises, and figures hit a 17 year high, the Government continues to ignore the human cost and push ahead with its hard and fast cuts – clinging to the hope that a struggling private sector can pick up the pieces. “These figures deliver a cold hard dose of reality. Private sector employment has increased by only 5,000, while the public sector has been hit with 67,000 job cuts – a huge gulf that the Government will fail to fill. As Thomas Cook looks likely to shed more than 600 jobs and la Senza become the latest retailer to face a restructuring, it is obvious that the worst is yet to come.“It is shameful to see that yet again, women, who make up the majority of low paid public sector workers, are the hardest hit by job losses. The 54,000 increase in youth unemployment shows that young people are also bearing the brunt, creating a lost generation that the Government will struggle to curb.“Unemployment hit similar highs before – when the Tories were in power. Warning bells should be sounding in Westminster this Christmas. We need urgent action to kick start the economy and prevent a new year unemployment record.”

Damning report reveals real picture of council cuts

UNISON is calling for the Government to refocus on local government services and finances, in light of a damning report* on council cuts by the Audit Commission and Local Government Association* (LGA). The report shows that councils across England have already made 145,000 job cuts and the number is set to spiral. This will have a devastating impact on the lives of local government workers and communities relying on the vital services they provide.UNISON Head of Local Government, Heather Wakefield, said:“The Government must refocus on providing funding to make sure vital local services are maintained, rather than stripped bare. Councils have already made far more job cuts than they said would be necessary. This report shows that the worst is yet to come.“UNISON members have been hit hard, as they struggle to pay bills in the face rising costs. Council workers are covering large numbers of deleted and frozen posts - on a two-year pay freeze, without the £250 compensation promised by Osborne for the lowest paid. Workers are doing more, for less, as resources drop, but demand rises. On top of this, they face cuts to pay and conditions, alongside plans to make them pay more into their pensions, work longer and receive less in retirement. “Teaching assistants, youth workers and social care workers are among the groups facing the largest cuts - despite record youth unemployment and an ageing population. Low paid women are the biggest losers, as they make up 75% of council workers and 90% of the occupations worst hit.“It is disgraceful to hear the Tory-led LGA boasting of having made 50% more savings than required by central government, even before the financial crash. The latest redundancies come on top of these huge, unnecessary cuts. These job cuts are not inevitable, there is an alternative and councils have a duty to their local communities to provide hope and employment to help people get through this financial crisis.“The report paints of a picture of a bleak future, where skilled staff lose their jobs, or are left buckling under the pressure with vital services being stripped back. These council cuts are hard, fast and unnecessary and will devastate communities when what the country needs are policies that will help to kick start the economy.”

Fuel poverty rises by a quarter

Commenting on new Consumer Focus figures, which show that fuel poverty is now hitting a quarter of all UK households, Mike Jeram, UNISON’s head of business and environment, said:“As winter draws near, a quarter of all households are being forced to make the choice between heating and eating. “According the national office of statistics, there were 25,700 deaths relating to fuel poverty in 2010-11, this is shameful. And sadly is likely to rise in line with the fuel poverty figure increase.“Just recently the big energy companies hiked up their prices, pushing ahead with profits in mind, while throwing more people into fuel poverty. Public sector workers facing pay freezes and job cuts, cannot cope with these rising fuel prices. “The Government has yet again made false promises, as it looks likely to fail its legal duty to end fuel poverty by 2016. “The Government is pushing people further into poverty with its austerity agenda. It should be concentrating on getting the economy back on track and protecting people from unsustainable prices.”

Public Service Pension Strike Rally Shrewsbury Square lunchtime today

UNISON chief issues rallying call to its 1.1 million members

On the eve of the biggest strike in the union’s history, Dave Prentis, General Secretary of UNISON, the UK’s largest union, has issued a rallying cry to its 1.1 million members saying:“This is an historic week for our union. The time has come to make your stand and join the fight for a fair pensions deal. I am so proud of all our members – including the nurses, social workers, PCSOs, librarians, dinner ladies, teaching assistants, bin men and paramedics who will be standing shoulder to shoulder on picket lines tomorrow.“We know we have the public on our side. They know that public service workers are not asking for more – they just want the pension deal they were promised.“Taking strike action is not an easy option, especially with Christmas just round the corner, but we will show Government ministers tomorrow that we will not take this pensions tax lying down.”

Government policies hitting women hard- not strike action

Dave Prentis, General Secretary of UNISON, the UK’s largest union, today accused the Government of making women and families pay a high price for the economic crisis, while the bankers get off scot-free. He hit back at claims made by Co-chairman of the Conservative Party, Sayeeda Warsi, that the pensions strike will damage women, saying that it is cuts to jobs, vital public services, pensions and benefits that are hitting women across the UK hardest. Added to this, the rising cost of absolute basics such as food and fuel are squeezing family budgets to the limit. The truth is that 3,700,000 women will be affected by the Government’s plans to make them pay more, work longer, for less benefits.Dave Prentis, went on to say:“It is this Government’s savage economic policies that are really hurting women and their families. UNISON has one million women members and they deliver vital services day in day out, looking after and educating our children, caring for the sick and elderly and keeping communities and young people safe. It is this Government that has pushed them to the brink and into strike action to protect their pensions. “Applications to join UNISON have gone up by 126% since the result of our ballot was announced, 81% from women. These women don’t take strike action lightly, but they know who to turn to for help – and it is not this Coalition Government who are losing the trust of women across the UK.”For facts about women and pensions see UNISON’s ‘The Pension Pinch’Coalition ministers want to make major changes to the pension available to public service workers – 65% of whom are women.

Check out our infographic. Click on it to enlarge it.
http://www.unison.org.uk/n30/infographic.asp

Public spending myths

It’s an uncertain and confusing time. People will try to exploit this by
spreading misinformation and creating scapegoats. Some are even
saying that public services are part of the problem. Here are the facts.
Was this crisis caused by too much public spending?

 the UK still spends less (21% of GDP) on public services and social security
than France (29%), Germany (27%), Italy (25%), or Sweden (29%).

 before this crisis, total UK public debt was less than 40% of GDP – lower than
other comparable economies and lower than it was in 1997.

 irresponsible borrowing and lending in the private sector caused this crisis – in
2008 household debt was 109% of GDP, and corporate debt almost 300%.

 public deficits are now rising fast because the government has had to take on
the private sector’s bad debts and counteract the damage to the economy.

Are public services a waste of money?

 there are examples of waste, like PFI or management consultants, but most of
the money goes to help people in need or improve everyone’s quality of life
 public service productivity has been improving consistently since 2003 – for
every pound put in, we get more and better services in return.

 investing in public services also helps local jobs and businesses – for every
pound spent, 64 pence is recycled into the local economy.

Do I get anything in return for the taxes I pay?

 the average UK household relies on benefits and public services worth more
than £10,000 every year – more than they contribute in direct or indirect tax.

 those in greater need, such as the elderly, people with disabilities or children in
poverty, rely on public spending even more – and would be hardest hit by cuts.
“In every downturn, politicians and press turn on the public sector – feather-bedded,
gold-plated, protected… Picking on choice examples of public excess, the right aims
to persuade voters to cut services in ways that will cause immense public harm.”
– Polly Toynbee, The Guardian

Are we paying for lots of ‘non-jobs’ in public services?

 some job titles sound odd if you don’t know what they mean – but they usually
turn out to be important and valuable if you look into it properly

 the public sector employs fewer managers per worker than the private sector,
and fewer administrators per worker than the private financial services sector

 the real problem in our public services is staff shortages – for example we don’t
have enough midwives, youth workers, planners, social workers, or carers

Do public service workers have it easy?

 26% of public sector employees feel “very stressed” or “extremely stressed”,
compared to 18% in the private sector

 31% of local government workers and 52% of NHS workers regularly work
overtime without receiving any extra pay or time off in lieu

 public service workers take no more sickness absence than workers of the
same age and gender employed in the private sector

 last year there were 48,000 redundancies in ‘education, health & public
administration’; many more are expected this year

Are public service workers over-paid?

 the richest 1% of the UK population take home more money every year than
the total pay bill for the NHS, schools and local government put together

 the majority of public service workers earn less than £22,000 a year, and 20%
of them – more than 1.5 million in total – earn less than £7 an hour

 since 1997 public sector pay has risen less than private sector pay, and for the
past few years public sector pay deals have been below-inflation

 the average pension for a local government worker is about £4,000 a year, or
£1,600 for women

 the average NHS pension is about £7,000 a year, or £5,000 for women – this
figure includes higher paid doctors; most NHS staff get much less

Does the recession mean public services have to be cut?

 right now the government should be borrowing to increase social spending.
Cutting benefits or services would make the recession longer and harder.

 in future years we will have to reduce government borrowing. But this can be
done by raising taxes or cutting spending in other areas. It’s a political choice.

 more people think the government should raise taxes (53%)
rather than reduce spending on public services (35%) as a way
of paying back public debt.

 billions could be raised by ensuring big companies and the
super-rich pay a fairer share of tax.

More could be saved by cancelling Trident or ID cards.

UNISON adverts paint real picture of pensions crisis ahead of strike

UNISON has launched a set of hard-hitting adverts, which show the real face of the pensions crisis pushing public sector workers to strike. The women featured include a custody detention officer, nurse and a local government worker, who finds jobs and apprenticeships for unemployed young people. The adverts point out exactly how much worse off the women would be at work and in retirement because of ministers’ pension proposals.Women in the public sector have been the hardest hit by the Government’s pay freeze, job and service cuts. Proposals to make them pay more for their pensions and work longer, for less, have forced these workers to breaking point and have led to them to join the picket lines on 30 November.Dave Prentis, UNISON’s General Secretary, said:“These are real people taking real action to protect their pensions. The majority of public sector workers are women, who are struggling to pay their bills and feed their families in the face of a pay freeze and rising inflation. These workers cannot afford to pay more and work longer, to receive less in retirement.“The workers in the adverts represent the many women who have been pushed to the brink by Government ministers’ pensions proposals.“Public sector workers spend their lives providing vital services and care deeply about their communities. They have had their pay frozen and seen rising workloads, as jobs and services are slashed. Now Government ministers’ are coming for their pensions. “We are willing to negotiate with Government ministers’ any time, any place, but we still have no deal that we can put to a single one of these workers. We want pensions that are secure and sustainable and give people dignity in their retirement. The door is open, it’s time to talk.”

UNISON calls on Government ministers' to negotiate

Commenting on Chief Secretary to the Treasury Danny Alexander's announcement today that there was "no more money on the table" to settle the dispute over the Government's controversial pension reforms, Dave Prentis, UNISON General Secretary, said:Despite what Danny Alexander says, there is no money on the table at the moment and no offer. After eight months of talks, all we have is a statement in Parliament. Danny Alexander's words need to be translated into offers in the specific pension scheme talks, so that we have something on which to negotiate and to put to our members. And if government ministers are so worried about the impact on the economy, they should make sure that there are offers made in those talks. The strike will go ahead - it is a last resort, but dinner ladies, teaching assistants and nurses will be among millions of public sector workers walking out next Wednesday. We are willing to negotiate any time, any place, for pensions that are secure and sustainable and give people dignity in their retirement.

Government Housing Strategy Raises False Hope

“For the millions of people on waiting lists, living in unsuitable homes, or struggling to get on the housing ladder, the Government’s latest bid to tackle the housing crisis, does little more than cruelly raise false hopes”, warned Dave Prentis, UNISON General Secretary, today.Decent, affordable housing is in short supply said the union, but today’s announcement of £400m has to be seen in the context of the 60 per cent - £4billion - cut to the affordable housing budget announced in last year’s spending review.Dave Prentis, went on to say:“The level of demand for affordable homes is outstripping supply at a rate of two to one. The government’s dogmatic refusal to spell out the extent to which their measures will address this gap does not give any grounds for optimism.“We need serious, long-term investment in the housing sector to give people hope and to boost jobs and the economy.”

FURTHER INFORMATION ON LGPS DISPUTE

1. The changes made basing index linking from RPI to CPI have already happened and will further reduce pensions.

2. Many low paid staff have already opted out of the LGPS – an average of 25% of eligible workers are not paying into the scheme, and in some authorities less than 50 per cent of workers are paying in

3. Many LGPS members are facing tough choices about their outgoings in the face of a pay freeze and the soaring cost of living including food, transport and energy prices. The 80% of local government workers earning £21k or under have not received the £250 compensation during what is so far a two-year pay freeze, unlike other parts of the public sector. Contribution increases will mean many will not be able to afford to continue to pay into the scheme

4. The threshold of £15k to protect ‘low paid’ workers from paying more is far too low. The Joseph Rowntree Foundation’s “Minimum Income Standard” for a working couple with two children is at least £36,800 for a minimum acceptable standard of living – an average of £18,400 each

5. Many part-time staff whose actual earnings are less than £15k will not be protected from having to pay higher contributions because their full-time equivalent earnings on which their pension is based would be above that. In local government two thirds of our workforce are part-time

6. The uncertainty about just what our pension will be worth in future years means many workers are losing confidence in the benefits of paying into the scheme. The current proposals for LGPS are due to take effect in 2014, but a whole raft more detrimental changes are expected from 2015. Workers are increasingly questioning whether it will be worth our while to continue paying more and more in. The uncertainty that has blighted confidence in private sector money-purchase schemes is spreading to public sector schemes

If there are large scale opt-outs from the LGPS, the consequences could be catastrophic.

On current terms the LGPS will be cash rich for 15-20 years – it currently takes in £4bn more each year than it pays out. If the changes trigger large scale opt-outs, the Scheme will be in deficit within 5 years. Far from sustaining public sector schemes for the future, the changes could be bringing about their demise.

03/11/2011
Yes Vote signals green light for strike action

Following the decisive yes vote, UNISON’s lay activists have given the green light to strike action on 30 November, to protect their pensions.The union welcomed the theoretical improvements to the pension schemes made by Danny Alexander yesterday, saying that the pressure from UNISON and others had resulted in the Government moving significantly from their original position.Dave Prentis, General Secretary of UNISON, the UK’s largest union, said:“Today’s Yes vote signals the green light for the first day of strike action, and we will be joining with other unions in the TUC co-ordinated day of action on November 30th.“While there was significant movement from the Government yesterday, at this stage we only have a theoretical pension scheme, that has yet to be translated into scheme offers. We have no offer in either the local government or the health pension schemes that we can put to our members.“What we do have is a overwhelming yes vote in a legal ballot. And our democratic committees have taken the decision to authorise action with the TUC in line with the wishes of our members.“So it is now up to government ministers and employers‚ to get down to work and come up with firm offers that we can put to our members.”