Pensions deal ‘could be withdrawn’ if strikes go ahead

The Chief Secretary to the Treasury, Danny Alexander, told the Guardian newspaper that he “reserved the right” to withdraw an improved offer if an agreement could be reached with the unions.

More than two million public sector workers from 33 unions, including teachers, health workers and immigration border control staff are planning to strike on Wednesday over changes to their pensions.

However Danny Alexander has urged union leaders to persuade their members that the latest offer is a “good and generous one”.

“I really believe that a deal is within our grasp,” he said. “I think that we absolutely can get to an agreement on the future of public service pensions and what frustrates me a lot is that we’re having these discussions centrally with the TUC and in individual schemes and they’re making progress, actually.

“The strike action in a sense is both a distraction to that process and also a risk to it in the sense that, obviously, part of going on strike will harden opinions on the union side and might make it harder for them to sell a deal to their members when in fact I think we’ve got the basis of an agreement that is a pretty good deal for both sides.”

However he warned that the offer put forward by the government – enhanced accrual rates for the new pension schemes and protection from pensions changes for anyone within 10 years of retirement – could be taken back.

“I reserve the right to take those enhancements off the table if an agreement can’t be reached. I don’t want to do that. I don’t want to be in that position. I want to be in a position where we have got an agreement.”

The government has warned that the economy could lose half a billion pounds because of the proposed 24-hour strike.