18.03.16
Lib Dems warn Budget pension reforms will cost NHS £650m
The NHS could lose £650m because of a requirement in Wednesday’s Budget for public sector employers to increase their pension contributions, the Liberal Democrats have warned.
The plans, introduced following an evaluation of the pension discount rate, will cost the public sector over £2bn by 2021.
The Public Accounts Committee warned in a report this week that the NHS deficit is set to hit £22bn by 2021 and that the NHS lacks a plan to deal with it.
Liberal Democrat Leader Tim Farron said: “Even by George Osborne’s standards, this is a vicious attack on our health service, schools and public services.
“He made grand promises about funding the NHS and is now making secret cuts by the back door.”
The plans have already been condemned by trade unions FDA and Prospect.