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Scepticism over pension reforms

Scepticism over pension reforms

A Labour MP has warned that workers are very sceptical about Government reforms to public sector pensions.

The changes, which ministers claim will save the taxpayer £430 billion over the next 50 years, would enable them to alter schemes when they want – something which John McDonnell said is concerning a significant number of employees. He said that workers do not trust the Government to enter into negotiations in future if they wanted to make further cuts to their pension pot, while adding the majority of unions do not agree with the reforms.

Speaking as the Public Service Pensions Bill reached report stage, the MP for Hayes and Harlington told the Commons the Government had inserted a clause which gave “extraordinary powers” to ministers to make more reforms in the near future, despite agreeing in negotiations not to make any further changes for 25 years. He commented that this is why there is a lack of confidence in the words of government ministers, adding that in future union bosses needed to be kept “fully informed” about any proposed changes.

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