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Press Release

NUT on Hutton Report

10 March 2011

Commenting on the Independent Public Service Pensions Commission final report, Christine Blower, General Secretary of the National Union of Teachers, the largest teachers' union, said;

“Let's be clear – public sector pensions are not 'gold plated' and they are affordable. The National Audit Office has confirmed that public sector pension costs are falling as expected due to the reforms already in place which include higher contributions, raising the pension age to 65 for new entrants and capping employer contributions.

“The Government has already announced, without waiting for Hutton's final report, a 50% increase in pension contributions and changed the pensions link from RPI to CPI. This already stated desire to increase pension contributions by more than half will cost newly qualified teachers up to £61 a month and experienced classroom teachers up to £102 a month – an additional cost which will see many leaving the Teachers' Pensions Scheme.

“These measures will price many teachers and public sector workers out of pension schemes and lead to dependency on the state in old age. This is in no one's interests, as Hutton himself admits. What it also reveals is that the Government has already set its own disgraceful course.

“The real pension problem is in the private sector where two-thirds of employees are not in any employer-backed scheme. We need decent pensions for all.”

“Hutton recommends a move away from final salary to career average pensions. The Government will try to use this proposal as another cost-cutting measure. They know that there are already good quality alternatives in place.

“Hutton recognises that any career average schemes should not be linked to CPI inflation because it would destroy their value. The Government cannot be trusted on these issues. Promises to protect accrued rights have already been broken.

“The NUT will be discussing the issue of defending teachers' pensions at our Annual Conference in April.”



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National Union of Teachers

National Union of Teachers

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