Political Change in Lancashire Raises Concerns over Cumbria Local Government Pension Scheme

The May local election in parts of England resulted in 10 county councils falling under the control of Reform UK, with it’s party leadership threatening to slash local government pensions at the ten councils it took control of in the May local elections — a move that has already provoked a fierce backlash from trade unions representing public sector workers across the country and raised concerns over pensions, including from some local government pension members in Cumbria.

The Fire Brigades Union (FBU) has vowed to “fiercely resist” the plans, and members of Unison, the largest local government union, are demanding their leadership take a stronger public stance against what they see as an attack on workers’ retirement rights.

FBU General Secretary Steve Wright slammed Reform UK for “declaring war on firefighters who pay into council workers’ pension schemes”. He warned that Reform UK deputy leader Richard Tice has stated that councils under his party’s control intend to cut the final salary pension schemes that public sector staff, including firefighters, have paid into for years. Tice has stated that Reform UK will take an axe to the Local Government Pension Scheme (LGPS).

In Cumbria, over 65,000 people are members of the Cumbria Local Government Pension Scheme, which became the responsibility of the LibDem controlled Westmorland and Furness Council following local government restructuring in April 2023. The Cumbria Pension Fund is administered on behalf of more than 120 employers across the county, including former councils, current unitary authorities, many town and parish councils, and the legacy Teachers’ Compensation Scheme. Until recently, it also included Cumbria Fire and Rescue Service staff pensions.

Although Westmorland and Furness Council is the official administering authority, it has delegated the pension fund’s administration to Lancashire County Council, due to what it described as “insufficient resource to carry out the administration work in-house.” The services are delivered by Local Pensions Partnership Limited (LPPL), a company jointly owned by Lancashire County Council and the London Pensions Fund Authority.

This delegation includes the payment of pension benefits — which in Cumbria covers monthly payments to over 18,000 pensioners and dependents — the management of employer data for over 120 participating organisations, and the maintenance of pension records for more than 60,000 active, deferred, and retired scheme members.

The situation has raised local concerns because Lancashire County Council is now one of the ten authorities under Reform UK control. The party has declared its intention to prevent new council employees from joining the LGPS, alongside proposals to cut pay for existing members. Some scheme members have also expressed unease about how their pension data is being managed, and who may now have access to it.

The issue has been inflamed further by the activities of a group referred to as “DODGE” — a US-style entity reportedly associated with Reform UK — which has scrutinised operations at Lancashire County Council without formal arrangements, governance protocols, or data security oversight. In a similar case in Kent, the local council confirmed that no such measures were in place when external political appointed DOGE group were reviewing operations.

Some former and current Cumbria council staff with pensions in the LGPS say they are now worried about the security of their pension data and the risk of political interference. One pensioner, who asked not to be named, said they were alarmed by the idea that a council under the control of a party openly hostile to public pensions could now be handling their retirement records and payments.

A spokesperson for the Cumbria Pension Fund said there was no reason to believe any changes in political authority in Lancashire would have any bearing on the fund and there were no plans to review current administration services.

The spokesperson said: "Our pensions administration is undertaken by the Local Pension Partnership Administration (LPPA),  an independent company in its own right.

"The Local Government Pension Scheme (LGPS) benefits and structure are set out in law and cannot be altered without changes to that law. This includes the rights of qualifying employees to join the scheme.

"In addition, access to Cumbia data would require our explicit permission. The data is subject to strict data protection, and cyber protection requirements, and third parties are prohibited from unauthorised access.

"As ever, our foremost duty is to act in the best interests of the fund's members and employers, including ensuring the fund is managed and that pension payments are made in compliance with the LGPS regulations."

Despite the legal protections in place, many in Cumbria’s public sector remain unconvinced that their pensions are safe from political influence. With one of the county’s most vital funds now administered by a council run by a party that openly threatens the LGPS, pressure is mounting on Westmorland and Furness Council to explain whether it will re-examine its outsourcing of pension administration to Lancashire.

Jon Richards assistant general secretary of UNISON the UK’s largest union, with more than 1.3 million members said “This looks like another Reform UK policy scribbled on the back of a beer mat. Local authorities are obliged to offer access to the local government pension scheme to all new starters.” “The scheme is well-funded and affordable. Many council employees aren’t on final salary schemes anyway.”

“Forcing council staff on to inferior pensions would leave retired workers much poorer and add to the already severe recruitment crisis in local government.”

For the thousands of people across Cumbria who rely on their Cumbria Local Government Pension Scheme, for current and future financial security, the question now is whether a political shift in another county will have any direct or indirect impact on their pension.