Hymans urges Hutton to hold fire on reforms

The former pensions secretary has warned he is prepared to urge the government to “deliver savings within the review period”, where he believes them to be “fair and affordable”.

But Hymans Robertson, which advises around half the UK’s councils on their pension arrangements, alongside a raft of state schemes, expressed concern at this proposal.

In a chapter of its submission – entitled Act in Haste, Repent at Leisure – the consultant cited 11 measures it believes might be under immediate consideration.

Of these, it claimed only one – increasing employee contributions – would bring benefits outweighing short and longterm problems.

The response’s author John Wright said: “There are very few quick wins that might achieve the government’s objectives.

“Increasing employee contributions seems like the most obvious measure, although care would be needed with the risk of higher opt-out rates and the potential cost of industrial action.”

In soliciting responses, Hutton said: “In addition, as set out in the terms of reference, I have been asked to consider the case for delivering savings on public service pensions ahead of the government’s spending review.”