LABOUR CAVES IN ON PUBLIC SECTOR PENSIONS; Millions Can STILL Retire at 60 - despite the Private Sector Having to Work Longer Pensions U-Turn

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Byline: JAMES CHAPMAN;BECKY BARROW

MINISTERS performed a humiliating U-turn over public sector pensions yesterday.

They dropped plans to raise the retirement age from 60 to 65 for existing NHS staff, teachers and civil servants.

The change, essential to cut the huge bill for public pensions, will now apply only to new employees. The climbdown, condemned as a surrender by angry business chiefs, came after crisis talks with unions who had threatened massive strike action.

Trade Secretary Alan Johnson had insisted as recently as last weekend that the argument for complete change was 'irrefutable'.

He said it would be impossible to tell private sector workers they had to …