Summary
Reform plans to change pension schemes for new local government workers in the UK by stopping the more generous defined benefit pensions and creating a British Sovereign Wealth Fund worth £500 billion. The plan aims to boost investment in UK companies and infrastructure, but it has been criticized for potentially harming workers' rights and worsening staff recruitment in public services.
Key Facts
- Reform wants to stop defined benefit pension schemes for new local government employees.
- These changes will create a £500 billion British Sovereign Wealth Fund.
- The fund aims to invest an extra £100 billion in UK businesses and infrastructure.
- There are currently nearly 100 separate local government pension schemes in the UK.
- Reform plans to merge these into larger funds.
- Critics, including unions, say this move could harm workers and make it harder to hire public service staff.
- Reform proposes switching new workers to defined contribution schemes, where pensions aren't guaranteed.
- Reform has also suggested scrapping some new employment and environmental rules.
