Clarkslegal LLP - Solicitors in Reading and London

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Spending Review 2010 - job losses, pension reforms

20 October 2010 #Employment


Chancellor George Osbourne has announced his Spending Review.  This was expected to set the deepest cuts in public spending in decades.

Welfare, police and council budgets have all been hit.  Headline points relating to employment/HR are:

  • 490,000 public sector job losses, including 25,000 civilians from the Ministry of Defence
  • Reform of public sector pensions - to save £1.8bn by 2015
  • Retirement age for men and women to rise from 65 to 66 starting in 2018 (4 years earlier than planned).  It is predicted that this will save £5bn per year.

There`s no doubt that the coming years will be tough and time will be the only effective test of this Spending Review, and indeed the coalition`s approach to the current economic situation in general.  What is clear is that it is not just the public sector that will be affected.  As the cuts filter through, the third sector and those in the private sector providing services to the public sector will also find themselves squeezed, as will those who find themselves out of a job. 

Employmentbuddy predicts a rise in redundancies, Employment Tribunal claims and strike action.  For further information, see Buddy`s Redundancy guidance and our monthly article on current opinion about strike action in the wake of the cuts.

Clarkslegal, specialist Employment lawyers in London, Reading and throughout the Thames Valley.
For further information about this or any other Employment matter please contact Clarkslegal's employment team by email at employmentunit@clarkslegal.com by telephone 020 7539 8000 (London office), 0118 958 5321 (Reading office) or by completing the form on this page.

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