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Rethink pensions plan

Posted: 17 March 2005 | Subscribe Online


As Community Care went to press, local government workers were waiting with bated breath to see if the deputy prime minister would see sense and scrap - or at least postpone - proposed reforms to council pensions.

The unions have promised that any failure on John Prescott's part to wave such a magic wand would result on 23 March in widespread industrial action on a scale not seen since the 1926 General Strike.

The source of the unions' anger almost 80 years on is plans to raise the retirement and pension age for council workers. To add insult to injury, the government wants to implement these changes a year earlier for local authority staff than other public sector workers.
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Admittedly, the backdrop to all of this is a concern about the future affordability of pensions more generally and the possible need for members of an ageing population to work longer. Private sector pension schemes are being reviewed across the UK and it is impossible to insulate local government workers and the rest of the public sector from these changes forever.

But, as we begin to turn the corner on social care recruitment and to raise the status of social work as a profession, is now really the time to attack staff pensions?

With recruitment and retention difficulties a perennial problem for councils, removing one of the few perks associated with local authority employment makes about as much sense as a chocolate teapot. The Local Government Pensions Committee itself has warned of the dangers of underestimating the value of a good pension scheme in a job market where there is competition for skilled employees and young people entering the workforce.
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The planned one-day walk out just before the Easter break would undoubtedly embarrass Labour in the run up to a general election. But the longer term effects of ploughing ahead with the proposed pension reforms could be worse still.

Current and future local government employees would be likely to read any decision to proceed with the changes as a sign that the government neither cares nor listens.

Prescott has a chance to prevent a groundswell of resentment and reaction. But the countdown to judgement day has begun.


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