Browse by

 

Media contacts

Christopher Bond
christopher.bond@lg-legal.com
T +44 20 7759 6963

Michael Reilly
michael.reilly@lg-legal.com
T +44 20 7759 6882


23 Mar 2011

Osborne accepts final report of Lord Huttons Independent Public Service Pensions Commission in Budget announcement

Following George Osborne's announcement in the Budget this afternoon that the Government is accepting the final report of Lord Hutton's Independent Public Service Pensions Commission, Lawrence Graham's Employment partner, Helga Breen, commented:

"The Chancellor's promise that the Government will accept Lord Hutton's recommendations in relation to what happens to public sector pension rights on a transfer to the private sector as a basis for consultation is welcome but comes as no great surprise. The Government pre-empted the Independent Public Service Pensions Commission's report and issued their consultation on the so-called "Fair Deal" policy earlier this month.

"The Fair Deal requires incoming private sector contractors to provide broadly equivalent pension rights for transferring public sector workers. Many have argued that the Fair Deal is anachronistic, anti-competitive and unfair both to private sector workers who don't have this protection and to the tax payer who has to foot the bill.

"The Government is consulting about a range of options and it is too early to speculate how far future policy will redress the balance between protecting public sector workers' pensions and reducing the astronomical cost to the public purse. The Government's public sector reform programme has got off to a rather shaky start, more rhetoric than results, so it remains to be seen how bold the changes will be in practice."




Helga Breen
Partner, Employment
Helga Breen
T +44 20 7759 6407
Email Helga
Add Helga to my contacts
.