UCATT Says Hutton Report Is A 'Recipe For Disaster'

Construction union UCATT have warned that forcing low paid public sector workers to contribute more to their pensions, in return for fewer benefits, when workers are also facing a pay freeze, is a recipe for disaster.

UCATT made their comments following the publication of John Hutton's final report into public sector pensions. In his report Mr Hutton recommends an increase in pension contributions for public sector workers, forcing workers to work an extra five years before they receive their pension and an ending of final salary pension schemes in favour of a career average scheme.

Alan Ritchie , General Secretary of construction union UCATT, said: "Contrary to the myths which surround public sector pensions, these schemes are sustainable and have already been subject to major reforms. Public sector workers are already struggling to make ends meet, increasing pension contributions will make this impossible."


The majority of local government workers already pay between 5.5% and 6.5% of their salary towards their pension contributions. The local government scheme has already undergone substantial revision leading to workers paying increased contributions.

Mr Ritchie added: "There is a genuine danger that by increasing contributions. Many low paid public sector workers will be forced to leave the pension scheme as they can no longer afford the contributions. Rather than improving the substantiality of the public sector schemes, increasing contributions could undermine their viability.

"The Hutton review recommends shutting out outsourced public sector workers from public service pensions. This is immoral; private sector workers may return in house later; these are still public sector jobs and should be respected as such."

As part of the Comprehensive Spending Review the Chancellor George Osborne indicated that he believed that employee contributions to public sector pensions should increase by 3.2%. Recently, Baroness Eaton the Tory Chair of the Local Government Association warned that there was "strong evidence" that by increasing contributions by such a high level, many workers will leave the scheme, which would then be in danger of collapse.

(CD/GK)