UNION

Court: govt should pay £2.4bn back to public sector workers

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28 Jun 2019
Press Office

Press Office

A high court ruling in a landmark pensions case means the Government should pay back an estimated 2.4 billion it owes to public sector workers immediately, says GMB Union.

The court today [1] denied the Government  leave to appeal against an earlier ruling that pension reforms in 2015 discriminated against younger workers -  known as the McCloud judgment. [2]

Ministers had been using the legal challenge as an excuse not to pay back an estimated £2.4 billion it owes to more than four million public sector workers for over charging their pension contributions.

 

Under a deal negotiated by unions including GMB on how to draw benefits due to the cost cap mechanism the £2 billion was going to be paid back to the workers by reducing their future pension contributions and/or improving benefits.

The Government had paused paying back the pension contributions pending the aftermath of the McCloud judgement.

Following today’s ruling GMB says they must not delay any further.

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George Georgiou, GMB National Pensions Organiser, said:

“Ministers have been doing everything they can to avoid paying back an estimated £2.4 billion they owe dedicated public sector workers' pension pots

“They should be ashamed of themselves – they are taking money from the people who keep our health service, councils and government running.

“The Government should take today’s ruling as an opportunity to do the right thing and pay up what they owe.”

 
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