Teachers, nurses and civil servants ‘could be offered higher pay for lower pensions’
The IndependentSign up for the View from Westminster email for expert analysis straight to your inbox Get our free View from Westminster email Get our free View from Westminster email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy Nurses, teachers and civil servants could be offered higher wages in return for lower pensions under plans reportedly being considered in Whitehall. However, it has the backing of Lord O’Donnell, the former cabinet secretary, who said it was a "win-win" reform that could save the exchequer money. "If you increase a civil servant’s pay by £1,000 you could reduce the net present value of their pension by more than £1,000, which makes debt more sustainable but would also be a trade-off that makes sense to the civil servant because having that money upfront will mean a bank gives them a mortgage," he said. Because there is no money set aside now for the pensions of teachers, NHS workers or civil servants, any saving in pension costs would not happen until today’s workers retired, whereas the extra cost of higher wages would happen immediately.
History of this topic
Teachers poised to end strikes as Rishi Sunak unveils public sector pay rise – but doctors dig in
The Independent
What does Britain really think about the strikes?
The IndependentDiscover Related
