Thousands of Tata Steel employees have voted in favour of a proposal to alter their pensions.

A consultative ballot addressed to all union members of Unite, GMB and Community, asked if they accepted the proposal of moving the final salary pension scheme to a less generous scheme. The offer also involved a £1bn investment commitment at Port Talbot and no compulsory job losses.

In all three unions, over 70 per cent of staff decided to accept the proposed “mirror” pension scheme which would result in reduced retirement benefits, would see future payments linked to consumer price index inflation rather quickly rising retail price index.

The new scheme will be a defined contribution scheme with maximum contributions of 10 per cent from Tata and 6 per cent from employees. Tata workers in their 50s, with plans to retire early could also make a one-off contribution of up to £10,000 it has been said.

Community general secretary Roy Rickhuss said: "This result provides a clear mandate from our members to move forward in our discussions with Tata and find a sustainable solution for the British Steel Pension Scheme (BSPS).

"Steelworkers have taken a tough decision and have shown they are determined to safeguard jobs and secure the long-term future of steelmaking. Nobody wanted to be in this situation, but as we have always said, it is vital that we now work together to protect the benefits already accrued and prevent the BSPS from free-falling into the pension protection fund.

"This ballot involved an extremely personal decision for everyone that voted. Whichever way our members cast their votes, we know they will not have taken that decision lightly and everyone’s opinions must be respected.”

GMB national officer Dave Hulse added: "Now that steelworkers have done their bit, it is time for the government to step up and do theirs. Instead of insulting steelworkers by classing their industry as a 'low priority', the government must set out a strategy for steel that recognises it as a high priority for investment and innovation."

Unite national officer Tony Brady concluded: "The UK government must now work in lockstep with the Welsh government and put steel at the heart of a manufacturing industrial strategy which ensures UK steel is used in all major infrastructure and defence projects."

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