Public Service Pensions Bill

Debate between Eilidh Whiteford and Robert Neill

Tuesday 4th December 2012 Commons Chamber

[Robert Neill]

The hon. Gentleman and I once worked out that we might have a very, very, very—however many “verys” we put into it—distant relative in common, but with every gentleness and respect, I would have to tell him that we do no good service at all to our public services by being unrealistic about the affordability of pension arrangements.

I talked about the intent with which we approach these matters and about honesty, transparency and being frank about the financial realities that underpin the schemes. This measure is a critical part of that. The most important service we can provide is to be frank and to produce a scheme, which I am satisfied the Bill does, that is financially sustainable for the future. We have talked about the technical issues, but the overall thrust of being financially honest about the affordability of our public sector pension schemes is absolutely critical—and the Government have got that right.

[Dr Eilidh Whiteford (Banff and Buchan) (SNP)]

I begin by expressing my gratitude to the Clerks and to Mr Speaker for their forbearance in ensuring that the amendment tabled in my name is debated in the most appropriate group this afternoon. That said, there is but one lonely little amendment—amendment 32, which would amend clause 16—in my name in this group. In some ways, it is a very technical and practical amendment, but it would allow for the closure of existing Scottish schemes by 1 April 2016 instead of 2015. It would put these reforms on a much more realistic time scale.

I am sure Members will be aware that the Scottish Government have devolved executive competence for a number of aspects of a number of Scottish public sector pension schemes. There have been considerable delays in establishing exactly what flexibilities are open to the Scottish Government in those areas for which they have responsibility, and it has been difficult to gain clarity over what that process might look like. That has obviously had an impact on the negotiating process.

Gaining clarity has happened in an extremely piecemeal fashion. Back in March 2012, Ministers initiated partnership negotiations with employers and trade unions about the pension schemes of the NHS, teachers, police and firefighters. On 28 March, a letter arrived from the Chief Secretary to the Treasury—I am sorry he is not with us for this debate—setting out some new constraints regarding the links between normal pension age and state pension age, which we will debate later. In May, there was more communication from the Chief Secretary, who informed the Scottish Government that they would require explicit Treasury consent for cost-sensitive changes to the teachers or the NHS schemes, and in July the Scottish Government were informed that the UK Government wanted to extend the Bill to non-departmental public bodies and Scottish judicial offices. At that stage, there was still no clarity on flexibilities relating to the pension age requirements, which everyone knows is a key sticking point in the negotiations.