High Court hearing on McCloud remedy cost begins

A High Court case over the government’s proposed method of paying for costs incurred by the McCloud judgment in relation to public sector pension schemes has begun today (31 January).

Public sector pension schemes were previously granted permission for a judicial review over the proposed method in July 2022, after initially applying to the High Court in December 2021.

The court case relates to the McCloud ruling, which found that the 2015 changes to public sector schemes that saw younger members transfer to a new and worse scheme, while older members remained in the existing and better scheme.

However, in its claim, the FBU argued that the government was attempting to “shift” the estimated £17bn that it is going to cost to reverse the changes onto members of the new, post-2015 public sector schemes, warning that this could leave younger scheme members to meet the cost of the McCloud remedy.

The case was brought by the Fire Brigades Union (FBU) and two named claimants, while the British Medical Association’s (BMA) claim has been held to overlap with this case and they will be heard together.

Alongside this, five further trade unions have been named as interested parties to the case. These are GMB, Public and Commercial Services Union, Prison Officers Association, the Royal College of Nursing and Unite.

Commenting on the start of the case, GMB national pensions organiser, George Georgiou, stated: "It's so disappointing to have to resort to legal action on this matter.

“The government lost the McCloud case hands down and it is clearly wrong they have shamelessly used GMB members pensions to pay their costs.

“We are hopeful that this wrong will be rectified, justice will prevail and the money will be returned to our members pension pots"

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