Pensions review 'couldn't come at a worse time', says RCN

Published: 07 October 2010

The Royal College of Nursing today (7 October) said that it was unfair to ask NHS staff to pay even more into their pensions when they will be subject to a two-year pay freeze, job cuts and a restructure of the NHS.

The RCN was responding to the publication of the Independent Public Service Pensions Commission’s Interim Report.

Dr Peter Carter, RCN Chief Executive and General Secretary, said:

“Today’s interim review asking NHS staff to pay more into their pensions couldn’t come at a worse time. While there are undoubtedly economic challenges, staff already face a two-year pay freeze and around 10,000 NHS jobs have been earmarked for cuts. A move to increase pensions by the Consumer Price Index rather than the Retail Price Index each year already generates significant savings to the Treasury.

“With the Government’s Health White Paper signalling fundamental reform we urge policy makers to keep in touch with what is happening on the ground. The Government need to take NHS staff along with them and the risk is that a steady erosion of goodwill and morale will occur which could threaten the ability to reform.

“There have already been fundamental changes to the NHS Pension scheme, which the RCN has supported, including an increase in contributions where the highest earners pay most, an increase in the pension age for new entrants, and protection for the tax-payer against any increased liabilities. We believe these changes make the scheme sustainable.

“We are pleased to note that Lord Hutton acknowledges that the majority of staff receive modest pensions and that he rejects the notion that public sector pensions are gold-plated. With the average pension paid to a woman retired from the NHS being less than £4,000 it is clear that the scheme is not overly generous.

Dr Carter added:

“Earlier this year our members showed their strength of feeling if their pensions were to be threatened. They will be angry at these moves. In the period before the final report is issued we will work with Lord Hutton and vigorously defend fair pensions for our members.”