Union reacts to Chancellor’s Autumn Statement

The FDA has responded to today's Autumn Statement by the Chancellor, stating that "public sector workers are being asked to pay a very high price for a crisis they played no part in creating".

The Chancellor's statement announced a 1% pay cap on public sector pensions for two years following the end of the current pay freeze, and brought forward by ten years - to 2026 - the date on which the State Pension Age will increase to 67.

FDA General Secretary, Jonathan Baume, said: "Bringing forward... the date on which the State Pension Age will increase can only exacerbate the difficulties of reaching an agreement on public sector pension reform because of the government's insistence on linking the pension age of public sector workers to the state pension age, and reinforce the determination of FDA members to take strike action tomorrow.

"This is a major change to the expectations for retirement of millions of both public and private sector workers, and has significantly reduced the value of the proposals announced by Treasury Chief Secretary Danny Alexander only three weeks ago. Successful negotiations are based on trust and yet a key aspect of the Government's pensions' proposal has been devalued at a stroke at the same time as unions are being urged to call off tomorrow's strike.

"The imposition of a 1% cap on public sector pay for two years following the pay freeze will not only exacerbate the real fall in living standards for public sector workers, but will once again unfairly penalise the civil service compared to the rest of the public sector as a result of the lack of automatic pay progression."