Budget pensions change 'hits NHS'

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Health and education will be squeezed by more than £1bn because of novelties to the way public sector pensions are funded, figures seen by the BBC show.

It finish after George Osborne announced in the Budget that employers want have to contribute more to pensions for NHS staff, teachers and the police.

He said mortal pensions would not be affected.

The Treasury said employers had three years to get on the brink of for the changes and would be helped by low inflation.

The technical changes to the way public sector golden handshake cause to retires are valued mean de rtments face contributing more to their inclusive cost from 2019 — effectively saving the Treasury around £2bn billion a year.

Addition cost

As a result, Commons library figures obtained by the Liberal Democrats swagger, the NHS will have to find an estimated £650m per year.

The changes at ones desire also see pension contributions for teachers rise by more than £400m, the Armed Imports by more than £300m and police forces by more than £100m.

BBC chief public correspondent Vicki Young said some ministers had asked for clarification once again how the changes would im ct on their budgets, but so far there had been no raunchy the extra cost would be shouldered by the Treasury.

The health and schools budgets are take under ones wing but both are already under pressure and this decision will add to the impression, she added — and the extra cost to the NHS would wipe out the real terms on the rise ministers have pledged for 2019-20.

‘Sneaked through’

Lib Dem leader Tim Farron translated the cuts were being «sneaked through» and would ultimately run-down less money to spend on teachers, doctors, nurses and the police.

«It intention mean the NHS, it will mean schools, it will mean the armed prizes, it will mean the police,» he told Radio 4’s Today. «It books that money directly out of the front line of those services.»

Mr Farron mean the cuts would be «intolerable» even if they served a justifiable mercantile purpose but Mr Osborne was acting solely to try and meet his self-imposed goal of a budget superfluous by 2020. «He has chosen to set targets which are unnecessary.»

Treasury officials tolerated there would be an additional cost for public sector employers but they had been knowing the changes were coming.

«We’re committed to regular revaluation to ensure in the open sector pension costs are met,» a spokesman said.

«The Budget report means employers have three years to pre re and we think they should be properly placed to absorb extra cost of contributions — especially because inflationary burdens are significantly lower than expected when budgets were set at investing review.»

The figures were revealed in the aftermath of the Budget as Mr Osborne veneer confronted criticism for cuts to some disability yments and questions over whether he determination hit his fiscal targets.

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