You are here: Home - Retirement -

Government denied leave to appeal landmark pension case

Written by: Emma Lunn
The Supreme Court has refused an attempt to overturn a pensions age discrimination ruling in a move which could cost the Treasury £4bn a year.

The case centres on transitional protections provided to older public sector workers as part of reforms introduced in 2015.

In a decision published in December 2018, the Court of Appeal ruled the protections – which ensured older scheme members could continue to benefit from the previous, more generous arrangements – discriminated against younger employees.

The Supreme Court has now confirmed an attempt to appeal the ruling has been rejected.

Tom Selby, senior analyst at AJ Bell, said: “Members of public sector schemes look set to receive a huge retirement boost after the Supreme Court refused to hear the Treasury’s appeal in this landmark age discrimination case.

“The transitional arrangements introduced alongside reforms to public sector schemes back in 2015 were designed to appease trade unions. This concession has now come back to bite the Treasury in the backside to the tune of £4bn a year. While for those affected this is clearly great news, it could not have come at a worse time for the Government.

“With Brexit leering over Whitehall like a Dementor, sapping the life out of every department approaches, the last thing a new Prime Minister – and most likely a new chancellor – wants to find is a ready-made black hole in the nation’s finances.”

Chief secretary to the treasury Elizabeth Truss detailed the £4bn cost in a written statement in January. It said: “The provisional estimate is that the potential impact of the judgment could cost the equivalent of around £4bn per annum. If the government is successful in court, we will implement the changes to employee benefits as planned. If the government is defeated, employees will be compensated in a way that satisfies the judgment.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Energy firms are ‘banning’ customers without smart meters from best deals

Energy suppliers have been accused of blocking customers from their cheapest tariffs if they do not have a sma...
Energy firms are ‘banning’ customers without smart meters from best deals

TalkTalk promises fairer broadband pricing

TalkTalk will offer new and existing customers the same deals, while vulnerable customers will automatically b...
TalkTalk promises fairer broadband pricing

Smart meter roll-out delayed by four years

The government has pushed back the deadline for smart meters to be offered to every home by four years until 2...
Smart meter roll-out delayed by four years

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Read previous post:
Partly-built home
Leasehold axed for new houses

The government has banned the sale of new build houses as leasehold and capped ground rents on new leases at...