Oral question asked in the House of Commons, by Lord Taylor of Goss Moor (Liberal Democrat). It was answered on Tuesday, 24 May 2005 on behalf of the Chancellor of the Duchy of Lancaster.

Public Sector Pensions

Question: The Minister will be only too well aware that the Government were heading into great difficulties with their proposals on pension reform for teachers, firefighters, medical staff, civil servants and others before the election, because people felt rushed into changes that had not been properly negotiated. The Government have now either sensibly decided, or been forced by circumstances during the election campaign, depending on one's point of view, to give more time for reform. Does the right hon. Gentleman accept that the great concern among all those employees is that traditionally in many of these sectors, there have been relatively low rates of pay compared with the private sector, which have been made up for by relatively strong terms and conditions of service in the context of protected jobs and good pensions? To take away some of their pension protections and privileges without considering the issue of pay has rubbed sorely with many of these people. Will the Minister accept that, and guarantee that the Government will consider those people's remuneration and terms-and-conditions packages?

Answer: I certainly accept that public sector pensions should be seen as an important part of retaining and recruiting key front-line public servants. I think that that is common ground between us all. As I have said, there is an agreement on both sides of the table that there will need to be changes to the schemes. What we are signalling, and what we have said, is that we want to have proper discussions with the trade unions about how we can take the reforms forward. I say in all candour to the hon. Gentleman—I know that he is against reform of any kind in the public sector—that there is a need for reform. We shall need to engage the trade unions in a debate about how those important pension schemes can be improved. It is silly to pretend that somehow we can wave all the problems away and hope that they will go away. They will not. The problems need to be engaged, and we will do that.

Secondary information

Type: Oral question
Reference: 434 c555
Session: 2005-06
Oral question type: Supplementary
Chamber / Committee: House of Commons chamber
Subjects: Pensions Public sector Industrial relations Workplace pensions Pension funds Meetings Negotiations Reform Trade unions
Link: View this Oral question on www.publications.parliament.uk