Unions suspend pension deal after Pickles’ blunder

Three trade unions representing public sector workers have withdrawn from an agreement with the government over pension reform.

Just hours after preliminary agreements on pensions were secured, Unite, Unison and the GMB have pulled out of a deal.

Unions allege local government secretary Eric Pickles attempted to add extra caveats to the deal after it was agreed.

Pickles' suggestion to add a cap on employer contributions to local government pensions, put forward in a letter to the Treasury, has since been withdrawn, but unions have yet to come back to the table.

In a joint statement, the unions said: "In light of this confusion, we suspend our agreement, and are now seeking an urgent meeting with the government to establish an agreed way forward."

Heather Wakefield, head of local government at Unison, said: "The announcement from Eric Pickles undermines trust and confidence in the relationship with the government over negotiations surrounding the local government pension scheme (LGPS)."

Yesterday the unions and the government agreed the LGPS would possibly be able to bypass employee contributions provided the scheme costs not more money.