The government has proposed changes to NHS pensions which will result in many workers paying more towards their retirement but trade unions have criticised the hike as ‘a step too far’.
The proposed amendments in the consultation were to change members’ contribution rates so that they would be based on actual pensionable pay instead of members’ notional whole-time equivalent pay.
The proposal also includes an amendment to the structure for member contributions and the number of member contributions payable by different cohorts of members. It also includes an annual increase in the member contribution tier thresholds in line with Agenda for Change (AfC) pay awards. Additionally, the proposed member contribution structure will be phased in over a two-year period.
UNISON head of health Sara Gorton said: “Asking many demoralised NHS staff to shell out more for their pensions could prove a step too far. Even though the changes won’t kick in until later in the year, the cost of living crisis will be far from over by the autumn. Top earners in the NHS will be quids in under the changes. Part-time staff will end up paying less too, but the majority of full-time employees will be worse off. Some significantly so.
“The government must get behind an inflation-busting wage rise for NHS workers to soften the blow, or many will walk. With many health workers close to the age they can start claiming their pensions, this is a real possibility. Then the NHS, which is already thousands of staff short, really could be in trouble.”
