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New NHS pensions offer expected from government Government makes 'improved' NHS pensions offer
(about 6 hours later)
The government is expected to announce a new offer on NHS pensions which it hopes will help end the wider public sector pensions dispute. The government has announced an "improved" offer on NHS pensions which it hopes will help end part of the wider public sector pensions dispute.
Reports say 630,000 lower-paid health service staff would be spared any rise in pension contributions next year. Under the proposals, 630,000 staff earning between £15,000 and £26,557 would be spared any rise in pension contributions next year.
But, href="http://www.thetimes.co.uk/tto/news/politics/article3251643.ece" >the Times reports, 700,000 higher-paid staff, including doctors and matrons, would pay hundreds of pounds extra. But high-earning employees would be expected to contribute more.
The Department of Health says an announcement will be made at 09:30 GMT. Unions have accused ministers of trying to "mislead" their members and by-pass ongoing negotiations.
The move follows last week's public sector strikes which unions say saw up to two million workers walk out in protest at pension plans.The move follows last week's public sector strikes which unions say saw up to two million workers walk out in protest at pension plans.
The government wants public sector workers to pay more towards their pension schemes, retire later and accept a pension based on a "career average" salary, rather than the current arrangement in which many public employees' pensions are based on their final salary.The government wants public sector workers to pay more towards their pension schemes, retire later and accept a pension based on a "career average" salary, rather than the current arrangement in which many public employees' pensions are based on their final salary.
'Moving goalposts'
On average, workers face paying an extra 3.2% of their salaries in pension contributions.On average, workers face paying an extra 3.2% of their salaries in pension contributions.
Under the initial Treasury offer published in July last year all NHS workers earning under £15,000 were protected from raised pension contributions.Under the initial Treasury offer published in July last year all NHS workers earning under £15,000 were protected from raised pension contributions.
The Times says the new offer means all those earning £26,500 would not pay extra contributions next year. Under the revised proposals, this ceiling would be increased to £26,557 for NHS workers but only for one year.
The BBC understands no new money will be on the table and the Unite union said the offer would penalise middle earners in the NHS such as nurses, health visitors and speech therapists.
"The harsh reality of what the government is pushing is that middle earners will be the ones paying for these impositions," said its assistant general secretary Gail Cartmail.
"This is a tax on those workers, plain and simple.
She added: "In its haste to sell this as good news, the government is failing to state what it plans for years two or three. They will press on as before so this is a swindle and a short-lived one at that."
'Cash grab'
The unions have also accused ministers of "by-passing agreed negotiating channels".
"We are in the middle of tricky negotiations where the goalposts keep moving and where the timetable looks increasingly unrealistic," Unison's Christina McAnea said.
"We will not walk away from talks but we need assurances that the desire for a deal is not one-sided."
MPs are to debate the issue of public sector pensions later on Thursday with the SNP and Plaid Cymru calling for the government to rethink its "unfair" proposals.
The two parties will use an opposition day debate they have secured in the Commons to argue that negotiations have not been transparent and the government is primarily motivated by a desire to reduce the deficit rather than guarantee the long-term sustainability of pensions.
Ministers have failed to acknowledge the significant savings made in the pension bill following an agreement between unions and the Labour government in 2007, they will say.
"This is just a cash grab from public sector workers who will work longer, pay more and get less in return," Plaid Cymru's pensions spokesman Hywel Williams said.
"It was not teachers and civil servants who left the finances in a mess - so why should ordinary people have to clear up the mess?"