'Jaw-dropping' ...Sir Keir slammed over 'astonishing' two-tier pensions plan

SIR Keir Starmer has been accused of planning "two-tier" pension reforms in the Budget with special protections for the public sector.

- Sam Lister

A tax on the contributions made by employers is expected to be announced next week but the NHS, schools and Government departments are among organisations that will be reimbursed.

Experts warned the move would increase the gap between generous public sector pensions and those in the private sector.

Former pensions minister Baroness Altmann said the Prime Minister's plan was "astonishing".

Writing in today's Daily Express, the peer said: "Some recent Budget rumours have been truly jaw-dropping. None more so than the suggestion about pensions.

"Hurriedly removing national insurance relief on employer contributions is bad enough, as it could up-end auto enrolment scheme administration, but exempting public sector employers is absolutely astonishing.

"Forcing these extra costs only on to private sector employer contributions would worsen our existing two-tier pension system.

Disparity

"Public sector employees already enjoy much better pensions than private sector employers can afford.