Coalition ministers want to make major changes to the pensions available to public service workers. These changes will directly affect around 3.7 million women – more than 1 in 4 working women in the UK, and over 1 in 3 working women aged over 50 – who make up around 64% of the total public sector workforce.
What is being proposed for public service pensions?
The combined effect of the proposed changes are that most people working in local government, the NHS, education and all our public services are expected to:
• pay more in contributions out of their salary – hundreds of pounds a year in most cases
• work longer before they can claim their full pension – to 66, then 67, then 68
• get less as a result of inferior ‘accrual rates’ and weaker inflation protection
Workers transferred to private or third sector employers may lose more pension rights.
What this means for women
Women will be hit particularly hard by these changes:
• women make up around 64% of the public service workforce – and an even higher proportion of those working in the NHS (77%), local government (75%), adult social care (80%), and schools (82%)
• male-dominated areas of public employment – the armed forces, police and fire fighters – have been exempted from the latest increases in retirement age, while hitherto protected ‘special classes’ of health worker (including nurses, midwives, health visitors, physiotherapists and mental health officers) face increases of 11-13 years
• around 1 in 3 working women are employed in our public services – an even higher proportion outside London and the South East – and will see their incomes in work and retirement reduced by these changes.
• women already receive very modest pensions, due to their lower pay and broken employment records – the median pension for women who have worked in the NHS is just £3,500 a year (£67 a week); the average for women who have worked in local government is £2,800 (£54 a week).
• women earn less than men – in the public sector, 21% less on average – and are concentrated in lower paid occupations. Even allowing for protections for the very lowest paid, this will make it harder to afford extra contributions, forcing many to opt out. Already 17.6% of women working in the public sector (around 600,000) aren’t saving into their scheme, leaving them much more exposed to poverty and insecurity in old age.
• women are more likely to have childcare responsibilities – available data suggests that around 1.3m women working in the public sector – over 1 in 3 – are working mothers, and over 250,000 of them will be single parents. Many will find it hard to work the hours needed to accrue an adequate pension.
• women are more likely to have other care responsibilities – available data suggests that at least 450,000 women public sector workers also care for an ill, frail or disabled family member, friend or partner. The largest number will be in the 50-59 age range – and will find it especially hard to work the extra years needed to earn a full pension.
• women simultaneously being hit with an accelerated increase in their state pension age – the government plan to increase the state pension age to 66 by 2020 for both men and women. This will mean women face a much sharper age increase than men. About half a million women in their 50s will have to wait up to two years longer to retire than was previously the case.
What is UNISON doing?
UNISON is working hard to get the government to think again:
we have submitted evidence that forced ministers to drop claims that public sector pensions are ‘gold plated’, and resulted in concessions on protection for the lowest paid
we are taking legal action against the government’s re-linking of pensions from RPI to CPI, denying millions of workers the pension they thought they were saving for
we have been leading negotiations with government and employers – but they are refusing to compromise and pushing ahead with changes without our agreement
we are balloting for industrial action, to initially start on 30 November, to stop these unwanted changes to our members’ terms and conditions of employment
What can you do?
UNISON is working hard to defend decent pensions. But we need your help:
add your voice to the campaign – talk to co-workers and friends, write to politicians and newspapers – you can get ideas and materials by clicking here
if you’re a public service worker, make sure you’re in a union – you can join UNISON online or by calling 0845 355 0845
if you’re in UNISON, and receive a ballot, make sure you vote YES. If you don’t receive one and think you should, call 0845 355 0845 or email pensionsdispute@unison.co.uk