Government acts to end pension discrimination and boost pay
Street cleaners, school cooks, and other dedicated public servants are set to benefit from a comprehensive package of reforms to the Local Government Pension Scheme (LGPS), aimed at eliminating discrimination and increasing take-home pay.
These reforms support the government’s broader Make Work Pay agenda, which includes measures to ban exploitative zero-hours contracts and end unfair employment practices such as “Fire and Rehire” and “Fire and Replace”.
Under the new proposals, the LGPS in England and Wales will become the first public service pension scheme—where women make up three-quarters of members—to automatically include maternity, shared parental, and adoption leave as pensionable service.
Additionally, longstanding inequalities in survivor benefits will be addressed. Current regulations have resulted in reduced pensions for survivors based on the nature of their relationship. These will be corrected to ensure fair treatment for all.
These changes will directly benefit frontline workers who serve communities every day—preparing school meals, maintaining public spaces, managing libraries, and keeping streets clean.
To further protect the integrity of the scheme, loopholes that allow individuals convicted of serious offences to continue receiving pension benefits will be closed, ensuring that public funds are used appropriately.
Deputy Prime Minister, Angela Rayner said: “These historic changes will give hard working street cleaners, librarians, school cooks and other public servants the security that they deserve.
“This is a critical step in ending years of discrimination, backing our dedicated public servants and helping to Make Work Pay.”
Minister of State for Local Government and English Devolution, Jim McMahon OBE MP, said: “Having worked in local government for years, I know first-hand how much those who help keep the lights on across the country rely on the Local Government Pension Scheme.
“Through these reforms, we will make sure they are properly rewarded and able to enjoy their hard-earned retirement.”
Minister for Pensions, Torsten Bell MP, said: “Today’s changes will ensure more public servants get the benefits and security they deserve.
“Our reforms to the Local Government Pension Scheme are bringing fairness and equality to workers, while boosting the potential of schemes to drive opportunity and growth in local communities.”
Currently, 74% of the scheme’s seven million members are women. One of the most significant gaps in women’s pensionable service is maternity leave. Making the final 13 weeks of such leave automatically pensionable represents a major step toward closing the gender pensions gap.
The reforms also address disparities in survivor benefits. Under existing rules, individuals in same-sex marriages or civil partnerships may receive more generous entitlements than those in opposite-sex relationships. The proposed changes will eliminate all discrimination based on the sex of the individuals involved.
Furthermore, the current age cap—requiring a member to have died before age 75 for their survivor to receive a lump sum—will be removed.
To encourage continued participation in the scheme, the government will also enhance data collection to better understand why members opt out, aiming to maximize the number of people who benefit.
A 12-week consultation on the proposed reforms is now open, and affected individuals are encouraged to share their views.
Additional measures under the Make Work Pay agenda include:
- Banning exploitative zero-hours contracts
- Ending “Fire and Rehire” and “Fire and Replace” practices
- Strengthening statutory sick pay
