Higher pay plan to offset smaller public pensions

MILLIONS of teachers, nurses and public sector workers could get thousands more in their pay packets in exchange for lower pensions to boost staff retention.

- Michael Knowles

Officials believe this could help people trying to buy their first homes or start a family.

Union chiefs are split over the idea, with some branding the move "dangerous".

Public sector pensions are often much more generous than those in the private sector.

Cabinet Office permanent secretary Cat Little is reviewing the balance between pay and pensions and has begun talks in Whitehall about offering more flexibility.