Former Labour minister John Hutton has been appointed as chair of the independent Public Service Pensions Commission by Chancellor George Osborne.

Hutton, who was secretary of state for work and pensions under the Labour government from November 2005 to June 2007, will oversee the commission’s work in a fundamental structural review of public service pension provision by the 2011 Budget. An interim report is expected in September 2010 ahead of the Spending Review.

The commission is tasked with making recommendations on how public service pensions can be made sustainable and affordable in the long-term, made fair to both the public service workforce and the taxpayer, and ensue they are consistent with the challenges that lay ahead.

However, existing accrued pension rights will be protected.

“The long-term sustainability and affordability of public sector pensions is crucial for sustainable public finances both in the UK and internationally,” commented the Chancellor. “We must consider options for reform that are fair to the taxpayer and to people who work in the public sector. I am delighted that John Hutton has accepted my invitation to chair the Commission.”

Osborne added that Hutton would bring a “clear and unbiased analysis to bear on this complex and important issue”.

Union UNISON has not, however, been so enthusiastic about Hutton’s appointment. Dave Prentis, general secretary, said: “Bringing in John Hutton as chair doesn’t fool anyone. I am disappointed that a former Labour minister would allow himself to be used as a tool to attack low paid public sector workers.”

Prentis said the Government must stop issuing misleading figures and mis-informed statements about public sector pensions, and instead wait for the results of the review.

“Only three years ago, public sector pensions went through massive changes to make them sustainable and affordable. Since then, there has been constant sniping and carping by the Tories and LibDems about unreformed, gold-plated pensions, quoting grossly misleading figures to create a climate for cuts.

“We are happy to participate in any review and to give evidence to that review, but the Government has a responsibility to make sure that it is independent and not a rubber-stamp for its ideological attacks on public services.”

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