High Court begins hearing case over £17bn unions claim was ‘taken’ from public sector pensions

The High Court today (31 January) began hearing a case brought by GMB and a number of other unions over the £17 billion they claim was ‘taken’ from public sector pensions.

The case concerns what GMB described as the Government’s “botched reforms” of the pension schemes for the NHS, teachers, civil servants, local government, the armed forces, police officers, firefighters and others in 2015. 

The union argued that the Government “shamelessly used GMB Union members pensions to pay their own costs”.

In 2011 and 2015 the Treasury introduced reforms aimed at making public service pensions more sustainable and affordable.

However, a 2018 Court of Appeal judgement (the McCloud judgement) ruled parts of the reforms unlawful due to the way they were implemented, which discriminated against younger members.

The Treasury now wants pension scheme members to pay the estimated £17 billion cost to put that right, despite the unlawful reform having been “its own mistake - a mistake which could have been avoided by listening to advice and which will take many decades to resolve”, the Public Accounts Committee revealed in June 2021.

George Georgiou, GMB National Pensions Organiser, said: "It's so disappointing to have to resort to legal action on this matter.

“The government lost the McCloud case hands down and it is clearly wrong they have shamelessly used GMB members pensions to pay their costs.

“We are hopeful that this wrong will be rectified, justice will prevail and the money will be returned to our members pension pots."

The hearing, brought by the GMB, the Fire Brigades Union, PCS, the Prison Officers Association, the Royal College of Nursing and Unite is set to last until 3 February.

Lottie Winson