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Press Release

NUT react to Hutton report on pensions

7 October 2010

Commenting on John Hutton's interim report on public sector pensions, Christine Blower, general secretary of the National Union of Teachers, the largest teachers' union, said;

"Today's report on public sector pensions will cause all teachers and public sector workers huge concern. At a time when public sector pay is being frozen, any further attack on teachers' pay is a grave problem. It risks driving teachers, particularly those at the beginning of their careers, away from the profession.

"We are pleased that John Hutton has recognised that public sector pensions are very far from 'gold-plated'. Half of public sector pensioners receive less than £5,600. The average pension for teachers is just under £10,000.

"We are also pleased that Hutton has recognised that it is simply not on to attack pension rights that public sector workers have already accrued. We are, of course, extremely disappointed that the government has broken its promises on accrued rights by proposing to change pensions indexation from RPI to CPI in April 2011, a move that will cost teachers on a £10,000 pension £35,000 or more over their retirement.

"The previous government's review of public sector pensions in 2006 concluded that costs were affordable. Changes were agreed and implemented to reduce the long term costs of the schemes and Hutton has confirmed this. These changes should be left in place to work. To do otherwise would be to play politics with the futures of many thousands of vital public sector workers.

"Although Hutton's comments on avoiding a 'race to the bottom' on pensions are helpful, his recommendations would do nothing to tackle the real problem of a lack of pension provision in the private sector. We need decent pensions for all.2




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National Union of Teachers

National Union of Teachers

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