22 Dec Public Sector Pensions Deal Back on Track

A deal between unions and the government is believed to be back on track after the furore over a letter sent by the local government minister Eric Pickles died down after it was revealed that it was a draft that was sent in error. The letter had threatened to derail the entire negotiation process as it suggested that employer's contributions into pension funds would be capped, sparking anger amongst the public sector. The government have since revealed that the letter was an error and have drawn up a new set of proposals which have been agreed by Unison, the Local Government Association and the GMB. "We are pleased that the agreement on principles and a timeline for more talks on the local government pensions scheme, are back on track," said Heather Wakefield, Unison head of local government. "They have the green light from government, marking a major step forward in the dispute over public sector pensions."