FINANCE

GMB slams 'hypocrisy' of council pensions

Ministers’ plans to ban councillors from local government pension schemes have been described as blatant ‘hypocrisy’ that would ensure town hall members are increasingly drawn from wealthy backgrounds.

Ministers' plans to ban councillors from local government pension schemes have been described
as blatant ‘hypocrisy' that would ensure town hall members are increasingly drawn from wealthy backgrounds.

That is the firm view of one of the most infl uential trade unions in local government – the GMB
union – in its official response to the DCLG's consultation on pension provision for elected members
and officer holders.

The union's response strongly backs local councillors in their fight to retain access to the flagship
Local Government Pension Scheme (LGPS), and outlines ‘great concerns' at the options in the consultation paper.

Angry GMB leaders claim the DCLG's key proposal smacks of hypocrisy because in ‘stark contrast',
Westminster's elected MPs have access to one of the most generous final salary-linked pension schemes in the UK.
 

‘In our view, the underlying impression given by the document confirms the low regard in which central government holds their locally or regionally elected counterparts,' the union's submission states.

‘We would be among the many to point out the apparent hypocrisy,' the document states.

Many councillors forego wellpaid jobs in order to undertake their public role, yet receive minimal
expenses. The GMB argues that LGPS access is one of the few financial perks.

According to one respondent to the GMB's own consultation on the issue, removal of access to
the LGPS and the absence of appropriate councillor pay could discourage some sections of society,
in particular the low-paid, from standing in local election. The un-named respondent warns that would leave town hall chambers increasingly full of those who are independently wealthy.

‘There should be no return to the days of "the great and the good", the wealthy and the retired, dominating public life,' the submission warns. Instead, the GMB states it could support the idea of altering councillors' LGPS contribution rates.

A DCLG spokesman, however, indicated the department was still minded to remove LGPS access
for councillors as part of plans to ease local government costs.

‘Subject to consultation, we do not believe that an occupational pension scheme intended for
employees, and paid for by taxpayers, is an appropriate vehicle for councillors. Councillors are
not and should not be employees of the council dependent on the municipal payroll,' he told
The MJ.

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