The government commissioned Hutton report proposed that public sector workers pay more for their pensions. The proposed NHS increase of between 25 -70% . At the same time the rate at which pensions will rise with inflation has been lowered so when people actually get their pensions it will increase slower than before. The result of these changes is that we will pay more and receive less.
Given the many thousands of pounds people are set to have taken away over the next years and decades (see table below) it is no wonder that workers across the education sector and civil service are being asked to ballot for strike action in opposition to similar rises to their pension contributions. If the ballots are won up to 800,000 ATL, UCU, PCS and NUT members could be on strike on 30th June this year. That would give the government pause for thought about whether they want to press ahead with making public sector workers pay for bailing out the bankers. UNISON may be balloting its members later in the year to join wider joint action in defence of pensions.
Below is a rough guide to how much extra you will be expected to pay each year if the pensions contribution rates are raised by 3% as the government plans.