The Consultation on the Fair Deal

At the Spending Review, the Government announced its intention to consult on the Fair Deal Policy. This was in response to a recommendation made by the Independent Public Service Pensions Commission which found that the Fair Deal Policy, coupled with current public service pension structures, creates a barrier to the plurality of public service provision.

The Fair Deal Policy requires provision of broadly comparable pensions where staff are compulsorily transferred from the public sector to a new non-public sector employer and applies where a public service is outsourced to be delivered by an independent provider.  The independent provider can be private sector businesses and non-profit making organisations such as charitable bodies and social enterprises.

The consultation seeks views on:

  • How the Fair Deal policy operates currently and whether this is relevant to future policy
  • Whether there are any other objectives that should be considered other than those identified in the consultation
  • If there is a case for changing the current Fair Deal policy and if so what pension requirements should be
  • Proposals for future policy
  • What approach should be taken for subsequent transfers of staff when previously transferred public services are re-tendered and for employees returning to the public sector having been transferred out in the past under the Fair Deal Policy

Devonshires, in conjunction with Look Ahead Housing and Care has submitted its views to HM Treasury.  A copy of our submission can be found here.  We would be interested to know what other employers’ views are on this controversial area.  The Government is already tackling the benefits provided under public sector pensions, which has brought about a wave of strikes.  Action arising from this consultation will therefore be carefully watched by the unions.

If you have any thoughts on the Fair Deal Policy let us know by commenting below!

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