Unions are sounding the alarm over Reform’s plans to cut public sector pensions
Reform’s plans to scrap so-called gold-plated public sector pensions will make it harder to hire enough doctors and nurses, unions have warned.
The proposals would also hit “the people who keep the country moving” such as bin collectors, social workers and school support staff, according to senior union figures.
Richard Tice, Reform’s deputy leader, on Wednesday suggested the party would axe defined benefit pension schemes for public sector workers, arguing they are too expensive for the state and therefore threaten the health of the economy.
But unions representing health workers said the plans put forward by Nigel Farage’s party would worsen a recruitment crisis in the NHS and social care, potentially impacting waiting lists and patient safety.
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It came after firefighters warned they could go on strike if Reform targeted their pensions.
Although the next election is not due until 2029, Reform are leading in the polls and the warnings from unions give a flavour of the opposition Farage could come up against if he takes power. The party leader said earlier this week that he expects an “economic collapse” to force an early election in 2027.
A defined benefit pension gives retired workers a guaranteed income, usually based on a portion of their wages, for as long as they live.
This differs from a defined contribution pension, where people pay into a pension pot that is invested, and then take responsibility for making that money last for their later years.
Tice on Wednesday claimed the liability for defined public sector benefit schemes was “growing at somewhere between £30bn and £50bn a year”, insisting it was “not unreasonable” to “sit down with unions” and discuss a different system for new employees.
The Unison union, which represents 1.3m workers who provide public services including nurses, paramedics and cleaners in the NHS, teachers, social workers and others said cutting pensions would harm the economy in the long run by making people poorer in retirement.
General secretary Christina McAnea said: “The wealthy bosses of Reform UK simply don’t want staff providing essential services to have a decent income when they retire.
“Threatening to make public sector workers poorer when they’re pensioners will cost the country more in the long run.
“It’s also no way to tackle recruitment problems rife in the NHS, care, schools and other local services.
“Anyone who thinks they’d be better off under Reform should think again.”
The British Medical Association, which represents doctors including those currently striking, said Reform’s plans were “ill thought through” and “not the silver bullet Reform seems to think they are”.
Dr Vishal Sharma, BMA pensions committee chair, said: “Cutting doctors’ hard-earned pensions would be a disaster for recruiting and keeping them working in the NHS, and a loss of doctors is the last thing we need when waiting lists are once again growing.
“After all, pensions are a central part of the total reward package doctors receive for keeping patients safe and well during their long and stressful careers.”
Sharma claimed “real-terms pay cuts” meant the value of doctors’ pensions had continued to fall – and that Reform’s proposals would also “do nothing to fix public finances”.
He said: “As it stands under the defined benefit scheme, pension contributions fund the benefits paid out to retired doctors. And currently, pension contributions for NHS workers exceed what is being paid out – creating a surplus for the Treasury, which in 2024-25 alone exceeded £6bn.
“However, if the scheme were to change tomorrow to a defined contribution system, it would create a gaping and growing black hole in Government finances, as it would no longer be able to rely on contributions to meet current or future liabilities.”
The GMB union said Reform’s proposals would also hit bin collectors and school support staff.
Rachel Harrison, GMB national secretary, said: “Farage’s plan to rip up pension agreements for school support staff, carers, social workers and bin collectors show exactly who he is.
“These are the people who keep our country moving.
“Imagine prioritising making their lives worse. He is no friend of working people.”
The Institute for Government has argued that there is good reason to explore changes to public sector pensions – but not for the reasons outlined by Tice.
Senior researcher Ben Paxton said public sector workers should be allowed to choose whether they would like to boost their take home pay in return for a smaller pension. He argues that this could help boost retention in the workforce.
However, this would require a fresh influx of cash from the Treasury to pay larger salaries upfront, with the savings from smaller pensions coming decades in the future.
Reform and the Government were asked for comment.