Reform UK plans to scrap 'gold-plated' public sector pensions for new workers

Joe Sledge
Thu, 23 Apr 2026 07:04:19 +0000

Reform UK has unveiled plans to abolish so-called "gold-plated" pension arrangements for new public sector workers from 2030.

The proposals would see defined benefit schemes, which guarantee retirement income, replaced with defined contribution arrangements dependent on investment performance.

Under the plans, individuals entering public sector employment after 2030 would no longer have access to guaranteed pension payouts.

The policy would take effect if Nigel Farage secures victory at the next general election.

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Reform UK has previously committed to ending such schemes for new local government employees, with the latest proposal extending the policy across the entire public sector.

The party, which is currently leading national opinion polls, is expected to perform strongly in next month’s local elections.

The pension reforms form part of broader efforts to strengthen the party’s economic credibility with investors.

Robert Jenrick, who serves as Reform’s treasury spokesman, confirmed earlier this month that he is reviewing pension arrangements for civil servants and other state employees.

Party sources indicate Mr Jenrick could announce a formal commitment to abolish defined benefit schemes as early as this summer.

The move is expected to be accompanied by wider welfare reforms aimed at improving the public finances.

Mr Jenrick, a former Conservative MP who joined Reform UK in January, has raised concerns about the scale of unfunded pension liabilities.

He said: "Such schemes were phased out in the private sector decades ago. They represent the Government's second-largest financial liability".

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The total value of unfunded public sector pension liabilities currently stands at £1.4trillion.

Under the proposals, doctors, teachers and civil servants entering the workforce after 2030 would instead be enrolled in defined contribution schemes.

These arrangements involve pension savings being invested, with final retirement income dependent on market performance rather than a guaranteed payout.

Around six million existing public sector workers would not be affected by the changes and would retain their current pension entitlements.

The shift reflects a wider trend in the private sector, where most employers have already closed defined benefit schemes to new members due to rising costs and increasing life expectancy.

This has led to a growing divide between public and private sector pension provision, with guaranteed retirement incomes now largely limited to public sector roles.

Reform UK said its proposals would align public sector pensions more closely with arrangements common across British industry.

Analysis from Policy Exchange suggests that closing defined benefit schemes to new entrants would initially increase costs.

The think tank estimates additional spending of £1.1billion per year would be required in the early stages.

This figure is projected to rise to £3.4billion annually within six years, but would be expected to generate significant savings.

Annual savings are forecast to reach £6.1billion after 20 years, which, by 50 years, could approach £40billion per year.

Policy Exchange said: "The scale of the liabilities involved means that public sector pension reform cannot be avoided by any Government serious about long-term fiscal responsibility".

A spokesman for Mr Jenrick declined to comment on the proposals.

HM Treasury has previously said it has no plans to reform public sector pensions and has rejected claims that they are unaffordable.