Gold plated? Where’s the evidence?

By Alice Perry

Members of the National Union of Teachers, the Association of Teachers and Lecturers and the University and College Union took part in strike action on June 30th against changes to the Teachers’ Pension Scheme (TPS) which will require greater contributions from pension scheme members for reduced benefits. The average lecturer will have to pay in around an extra £90 a month and there is a real risk of significant opt-out by new starters, which would not only damage their chances of a decent retirement, but also the long-term sustainability of the pension scheme.

The Tories say that the TPS is ‘gold-plated’ and unaffordable but this is not borne out by evidence. Contrary to the Tories claims the average pension for men working in further education is only £10,000, while the average woman’s pension is just over £6000 a year, whilst reports from the National Audit Office and the House of Commons’ Public Accounts Committee show that the cost of teachers’ pensions is falling. Even Lord Hutton’s report makes clear the payment of pension benefits from unfunded public sector schemes such as TPS is actually scheduled to fall from a peak of 1.5% of GDP in 2011 to less than 1.1% over the next fifty years.

Teachers, lecturers, police support staff, coast guards – these are not the people who approved irresponsible sub-prime mortgage lending. They were not awarding themselves large bonuses as share prices fell and banks collapsed. Public sector workers did not cause the UK budget deficit. Ripping up longstanding contracts and forcing millions of people into poverty in their retirement is grossly unfair.

TPS is not the only pension scheme under attack. Staff from older universities pay into the Universities Superannuation Scheme (USS) and UCU is currently balloting members for industrial action to defend members’ pensions. Recent changes forced through to USS make it cheaper for employers to sack staff and see new members receiving significantly worse pensions, creating an unsustainable two-tier system.

The strike ballot for pre-1992 universities closes in September. If negotiations fail it would be possible for UCU to take part in coordinated strike action with other unions in October. The British Medical Association voted to ballot members over industrial action over attacks on their pensions. Nursing and fire brigade unions are expected to do the same.

For workers facing attacks on their pensions, pay and conditions it makes sense to co-ordinate strike action as the PCS, NUT, ATL and UCU did on June 30th. I hope negotiations succeed and no further strikes are needed. If the government and employers continue not listening and continue to be unreasonable, it is right for the unions to consider future co-ordinated strike action.

Labour shouldn’t be afraid of saying hard-working people deserve a fair pension. Conventional wisdom said the general public would not support public sector strikes over pensions. The opposite is proving to be the case as Owen Jones explained previously.

It is hard for the rightwing press and the government to demonise nurses, doctors, firemen and especially teachers. We all know one. We know they are not selfish or lazy or greedy. We know they do a tough job out of an altruistic desire to help other people, serve their communities and make Britain a better place.

It goes against the notion of British fair play to see the terms and conditions of contracts torn up. It is disgraceful for the millionaire members of the cabinet and MPs to attack ordinary working people’s pensions when they have no plans to reform their own final salary pension scheme. The Labour Party must join trade unions in standing up for the rights of ordinary workers.