Government must not add public sector pensions to the race to the bottom

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date: 3 March 2011

embargo: For immediate release

Commenting on the launch today (Thursday) of the Treasury consultation on the Fair Deal pensions policy for staff transferred out of the public sector, TUC General Secretary Brendan Barber said:

'The Fair Deal on pensions provides an essential safeguard for staff where public services are transferred to private sector providers. Removing it would allow private contractors to boost profit margins by slashing staff pensions.

'The government has made clear its commitment to wholesale privatisation and outsourcing. Public sector workers, already facing a sharp income cut, are rightly worried about the potential loss of this pension protection.

'We've already seen the damage caused by the race to the bottom in pension provision across the private sector. Adding public sector workers to this will lead to greater poverty and more dependence on state benefits.

'We hope the consultation is fair and transparent, and recognises the importance of decent pensions in the public sector.

'The TUC is also engaged in a broader discussion with the government about public service pensions and we hope that the government takes on board the concerns of public sector staff.

'These discussions must consider all the issues - and the government must demonstrate it is committed to supporting decent pensions for those delivering our public services.'


- The Treasury consultation can be accessed here

- All TUC press releases can be found at


Media enquiries:
Liz Chinchen T: 020 7467 1248 M: 07778 158175 E: [email protected]
Rob Holdsworth T: 020 7467 1372 M: 07717 531150 E: [email protected]
Elly Gibson T: 020 7467 1337 M: 07900 910624 E: [email protected]

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