Recommendation 11

In both of these cases, the government knew these issues had the potential to arise and could have avoided them. In the case of the McCloud judgement, government was advised that special transitional protection could potentially be in breach of age discrimination legislation.22 HM Treasury told the Committee that officials produced legal advice on a range of options for transitional arrangements, including discussion of potential risks of challenge under the Equality Act.23 In 2012, GAD provided HM Treasury with analysis that suggested the cost control mechanism could easily be triggered even in normal circumstances.24 It is clear from evidence submitted to us that these issues, and government’s response to them, has undermined the trust between HM Treasury, employers and other stakeholders. In particular, many have commented on the pause to the cost control mechanism and government’s decision that members should shoulder the cost of the McCloud remedy.25 17 Qq 67 18 Qq 55, 75; C&AG’s Report, para 17 19 Qq 55, 75; C&AG’s Report para 3.10 20 Q 75; C&AG’s Report, para 17 21 Qq 75–76 22 Qq 64–66; C&AG’s Report, para 3.2 23 HM Treasury (Catherine Little) letter to the Committee, 12 May 2021 24 Qq 75–77; C&AG’s Report, para 3.13 25 Unison submission page 3; Prospect submission page 4; HCSA submission page 3; BMA submission page 2; UCEA submission page 3 Public Sector Pensions 11 Evaluation of reforms