Dundee Evening Telegraph: Row erupts over council pensions

For every £5 raised in revenue by councils, more than £1 now goes to fund local government pensions, a new report claims today (writes Bruce Robbins).
The Taxpayers’ Alliance called for an end to the final salary scheme which allows some to retire early with full benefits.
And Dundee Council Taxpayers’ Association secretary Steve Blackwood told the Tele it was time to look at the public sector’s “cushioning” of local authority workers.

But Unison, the main union, said changes are already planned and that, “it’s not a great scheme”.

However, Mr Blackwood explained, “Final salary schemes are going out in the private sector and there is no doubt the public sector scheme is costing taxpayers a lot of money.

“The Government has always cushioned public sector workers at the expense of Council Tax payers and it’s something we should be having a right good look at.

“That money could be spent on other services. We really need to end these fancy pension schemes that allow public sector employees to walk away with big deals that have to be paid for by Council Tax payers.”

Spending on local government pensions rose by 13% last year to hit £4.6 billion, according to information released to the Taxpayers’ Alliance under Freedom of Information.

The £4.6 billion total was equivalent to 21% of cash raised through Council Tax.

In England, the rise is likely to force up bills. Most Scottish councils have managed to resist a hike because of the SNP government’s commitment to freeze Council Tax.

The Local Government Pension Scheme is still linked to final salary and allows many employees to leave early with full benefits.

Alliance chairman Andrew Allum said it was unacceptable that ordinary families and pensioners were struggling to pay tax, much of which is spend on pensions schemes that have all but disappeared in the private sector.

He added, “The problem is clearly getting worse and requires urgent attention. Councils should start correcting their own behaviour immediately and the Government must face down union pressure and reform the outdated local government pensions scheme as soon as possible.”

In some areas, the alliance said the cost of funding local government pensions exceeded £100 for every member of the population.

However, the pressure group’s findings were dismissed by Unison’s Dundee local government union representative Rory Malone.

Mr Malone said Unison was already planning to ballot its members next month nationally on a new pensions scheme.

The proposal would introduce several changes designed to cost councils less.

“I refute the claims that have been made by the organisation and find them disgusting,” he said.

“I would ask them to come and work in the public sector as a classroom assistant. They are not enjoying great sums of money.

“Historically, local government workers have been paid much less than in the private sector because they have to pay so much into their pension scheme.

“Local government employees work very hard for years and years to provide the best public services this country has witnessed.

“It’s not a great scheme, it’s not a foolproof scheme but just look at some chief executives in the private sector who are only in a job for one or two years and walk away with £1 million pensions.”