Many of you not only read about the government limiting the amount local government workers would receive if made redundant, you also wrote to the minister responsible for this, signed petitions and wrote to your MPs. The government pushed ahead with this and made it law in November. However, it faced a judicial review led by UNISON, and that combined with the campaigning you all did led to the Tories revoking the law after only 3 months.
The government, the Daily Mail and other right-wing cheerleaders said that these regulations were introduced to cut big pay outs to the highest paid public servants when they were made redundant. They set a ‘cap’ to pay outs of £95,000, which sounds a lot.
But in reality this payment cap meant that even lower paid staff could have been caught up by the law. In particular, it would have affected those in the local government pension scheme (LGPS) who were made redundant over the age of 55, as their benefits are payable immediately without any early retirement reduction.
Employers have to cover additional money for the early retirement (so-called ‘pension strain costs’) and when these are added on top off any redundancy payments, this can quickly mount up and exceed the £95,000 cap.
UNISON and other unions made a legal challenge that was due to be heard in a few weeks. However, just as we were finalising our evidence, the government backed down – sneaking out the news on a Friday evening, hoping to dampen down any press coverage! The government says that it has disapplied the regulations, with a view to revoking them completely, because it may have had ‘unintended consequences’.
It’s worth noting that these regulations would only have kicked in when someone was made redundant. And with thousands of jobs having already gone across public services over the last decade of austerity, one job going is still one too many.
The lesson for us here is that campaigning can work!
