‘Squeezed middle’ NHS earners in Treasury pensions rip-off, says Unite

8 December 2011

Thousands of middle-income NHS employees will be subject to ‘a smash-and-grab’ raid by the Treasury, under the latest NHS pensions’ proposals.

Unite, the largest union in the country, today (Thursday, 8 December) hit out at the ‘divide-and-rule’ tactics that have been the hallmark of the government’s negotiating strategy on public sector pensions since February.

Unite, which has 100,000 members in the health service, said that thousands of health visitors, speech-and-language therapists, biomedical scientists and pharmacists will lose out and pay hundreds of pounds more in pension contributions next year.

Under the government’s proposals announced today anyone earning less than £26,500 will not pay more for their NHS pension in 2012, however, Unite said that it is not clear what was going to happen in the following years.

Unite assistant general secretary, Gail Cartmail, said: ‘These are tawdry ‘divide-and-rule’ tactics designed to set one set of dedicated hard-working NHS workers against another.’

‘Once again the government is attempting to mislead the workforce and the public about the true impact of their proposals. The harsh reality of what the government is pushing today is that middle earners – the ‘squeezed middle’ of health visitors, speech-and-language therapists, biomedical scientists and pharmacists - will be the ones paying for these increased contributions in this ‘smash-and-grab raid’.’

‘This increase will range between 1.5 per cent - 2.4 per cent which has to be seen in the context of a public sector pay freeze.’

‘This is an unfair tax on middle earners, as the revenue will go straight to the Treasury to pay off the national budget deficit caused by the banking elite and not ploughed back into the scheme.

‘In its haste to sell this as good news, government is also failing to state what it plans for years two and three. It will press on as before, so this is a swindle and a short-lived one at that.’

‘Further, ministers must stop bypassing the agreed negotiating channels.’

‘The correct place to discuss proposals is around the table, not via the airwaves. This is another cynical attempt to turn the public away from supporting those who deliver their services. It won’t succeed.’

‘It should not be forgotten that the NHS pension scheme is self-funding and at present collects £2 billion more in contributions than it pays out in benefits.’

-ends-

Note to news editors:

For further information, please contact Unite communications officer, Shaun Noble on 07768 693940.

In the three years to 2014 the majority of NHS staff  will face total increases ranging from 3 per cent - 6 per cent,  while having experienced a two-year pay freeze and two proposed years of 1 per cent increases. At the same time inflation has been at about 5 per cent.

These increases are a levy to reduce the government's deficit and not the deficit in the pension scheme. The concession to the low paid is paid for by other NHS employees and not by the government

Once contributions have been ratcheted up, all - bar the oldest staff - will face a change in the benefits which will require them to work and contribute for eight years longer to get the same benefits (for eight years less retirement)

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