Pensions offer ‘to be enhanced’

Ministers are set to make an “enhanced offer” to unions in a bid to get public sector pension changes agreed.

The BBC has been told the offer will focus on more generous pension accrual rates and higher “cost ceilings” that limit taxpayer liabilities.

Many unions are balloting over planned industrial action on 30 November.

Chief Secretary to the Treasury Danny Alexander and Cabinet Office Minister Francis Maude are due to set out their plans to trade unions.

Detailed negotiations

They will also update MPs in a Commons statement.

Government sources said the aim was to inform public sector workers about what the changes would mean for their pensions before the results of strike ballots are announced soon.

The offer also reflects the government’s desire to reach agreement on the overall framework for reform as soon as possible so they can start negotiating on the details within each pension scheme.

Treasury sources said the changes would mean that most workers would pay in more and work for longer but those on low and middle incomes would get a pension as good as or better than they would get now.

Ballot results

They also insisted that the package would be far more generous than most in the private sector.

More than a million members of public sector union Unison are involved in a vote on potential strike action over pension changes, with the result due to be announced on Thursday.

Unison is opposed to proposed pension changes that will see public sector staff have to contribute more to their pensions and wait longer until they are able to retire.

A number of other public sector unions are also proposing strike action on 30 November.

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