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    Unions Lose High Court Battle Over Pensions

    A powerful group of public sector unions have lost their high court challenge to the Government's pensions reforms.

    Unions argued that Chancellor George Osborne's decision to use the Consumer Price Index (CPI (Berlin: CEJ.BE - news) ) rate of inflation to calculate annual increases in public sector pensions, instead of the higher Retail Price Index (RPI), was unlawful.

    But the accusation was rejected by Lord Justice Elias, sitting with Mr Justice McCombe and Mr Justice Sales - just two days after tens of thousands of public sector workers took part in a nationwide strike over pensions reforms.

    The unions said they would appeal the High Court ruling.

    Fire Brigades' Union (FBU) general secretary Matt Wrack told Sky News the judgement concludes the Government's measure is nothing to do with pensions.

    "We were told this is a serious debate about life expectancy and all those issues, but what we're finding out is that this attack on public sector pensions ... is all about putting more money in George Osborne's coffers to pay for the mess the bankers have made of our economy," he said.

    The panel of three High Court judges found unanimously against the unions on three of their four points. They ruled by a majority of two-to-one against them on the fourth.

    The unions had tried to argue that the switch to CPI was a deficit reduction measure, primarily intended to save the Government money.

    The Treasury's own figures estimate the change will save £6bn by 2014.

    The judges agreed that the swap was motivated by the need to reduce the deficit, stating: "There can be no doubt that the immediate driving force behind the change from RPI to CPI was the need to secure cuts in the welfare budget."

    But they found that CPI was a "proper measure of inflation" that the government was entitled to adopt.

    The unions said they would seek an expedited appeal, which could see the case back in the court of appeal by mid-February.

    Speaking after the judges' decision, the largest teachers' union, NASUWT general secretary Chris Keates, said they would "seek to exhaust all possible legal remedies".

    "Hardworking serving teachers and their retired colleagues who have given a lifetime of service to children and young people were looking for justice in the face of a government decision which overnight slashed the value of their pensions," he said.

    "They will clearly be disappointed that the High Court has not found in their favour.

    "They can however take heart from the fact that the judges were unable to reach a unanimous decision on all of the key issues put before the court. One of the judges did believe that the government had acted unlawfully."

    The switch to CPI, which came into effect in April, was announced by Mr Osborne in the June 2010 emergency budget.

    Unions say the move will reduce the pensions of retired members by up to 15%.

     

    248 comments

    • HLL  •  2 months ago
      Tax relief for private pensions costs the taxpayer more than public sector pensions. Of course, most of this go to the highest earners.
    • molly  •  2 months ago
      Let's see the figures for life expectancy after retirement of the average public sector worker because working shifts reduces life expectancy by years plus all the other disadvantages of working in a physical job until 67. I know of very few people who live past 75 in the south wales valleys so where is the money gone??
    • ROY  •  2 months ago
      Fat cat Union Leaders with their pumped up pensions with an I'm alright jack mentality, what example are they setting.
    • Tony  •  2 months ago
      Just shows how stupid the Unions are. The Public Sector have pensions the rest of us can only dream about. It is a fact that we are all living longer so it follows that people have not paid enough to take this increase into account. Yet again the Unions are wasting more public money on fighting a bad case
    • Lawrence Terry  •  2 months ago
      I thought the government set the rules and laws in the country, not self centered trade unions who live in the dark ages. And why are they wasting members fees on court costs. Well if your the likes of crow and prentice and their cronies earning 6 figure salaries and GOLD PLATED PENSIONS! it gives them some form of righteous platform to justify their existence.
    • Nicholas  •  2 months ago
      To all you people calling the civil service unions useless, please take note:

      The battle to preserve pension rights to increase by the higher RPI traditonally used instead of the lower and recently-introduced CPI was on behalf of everyone in the UK under the Human Rights Act (Social Security posessions) who pays into a works pensions now or is retired.

      Now they have lost the case, almost everyone's work pensions (private sector and civil service) will increase by the lower amount, which means people will lose on average 1% a year every year off their pension for each year that they have worked and paid into an employer pension scheme i.e. over 40% for a young person/person about 30 years' old.

      Not so smug or anti-union now eh?

      From a hard-working civil servant (who like almost of my colleagues) hits his targets all the time, does more work ina day than he has to and only receives £16,000 a year with at best, the chance of a £2-3k pension after possibly 30 yrs work now the CPI battle/pensions reforms have kicked in!
    • Patch  •  2 months ago
      At last some common sense!!
    • pumpkin  •  2 months ago
      It's time we saw what the MP's pensions were like. They are the ones who's pension are protected against anything. Their pension rules don't change.
      Instead of just attacking the normal lower paid civil servants people should ask to see the governments pension pots......
    • Stokeytone  •  2 months ago
      What did the Unions expect, the Judge to side with them?
    • Wavey  •  2 months ago
      No! Dont tell me these Unions can't controll the High Court, they told me they controlled everything!
      including the muppets in the public sector or was that the PUB sectot, where they get their Fat Bellys!
    • dodgy 'arry's dog  •  2 months ago
      "Hardworking serving teachers and their retired colleagues who have given a lifetime of service to children and young people were looking for justice"

      And what about the millions of hard working private sector workers, who put in longer hours for more years with less time off and without a gold plated pension? And who already pay more into the public sector funds than public sector workers do. It's about time the balance was eredressed, so get used to it
    • Dale  •  2 months ago
      Good - you lost lol
    •  •  2 months ago
      @#$% the unions.
    • Koh-i-Noor  •  2 months ago
      Unions and Benefits - the two biggest diseases of our generation. The first promotes laziness and incompetence. The second rewards it.
    • The Drunken Fool  •  2 months ago
      Maybe they should use the "we've magically suddenly got loads of money to give away to all and sundry" calculation.
    • patrick w  •  2 months ago
      What do these old Etonians know or care about justice for the lower orders ? Osbourne ,Cameron and Boris probably fagged for 'em !
    • John  •  2 months ago
      Useless bloody unions spending poor peoples money earning a large lump for doing nothing
    • Martin  •  2 months ago
      right or wrong the courts always agree with the goverment as raising funds for goverment is the main purpose of the courts most of our laws are there to raise revenue nothing else. rich prats helping other rich prats the system is the problem
    • John Medved  •  2 months ago
      Teachers that can't spell, NHS hospitals that go "off duty" at weekends, policemen who don't police.

      It's time that public "servants" first provided some "service" to the public. Then they could moan about their pay and pensions.

      Reform is urgently needed - let's get on with it.
    • JJ  •  2 months ago
      What Planet are these people living on? The vast majority of hard working people in the private sector have to fund their own pensions - How about this for an idea - work hard and earn your own pension - stop expecting everybody else to pay for you...it is called taking responsibility for your own future.