SADIQ Khan has been urged to slash gold-plated Transport for London pensions instead of hiking bus and Tube fares or expanding the congestion zone.
TfL services are on the verge of collapse due to a £5billion black hole in finances that have worsened due to the Covid crisis.
The Government is in a bitter row with London Mayor Sadiq Khan over the terms of a bailout package, which could see Tube and bus fares hiked, an expansion of the congestion zone and higher council taxes.
The Tory London Mayoral candidate Shaun Bailey said it would be unfair on the capital’s nine million residents if they are hit with higher fares and driving charges while TfL continues to payout huge pension contributions to its staff.
Currently TfL staff get paid a third of their salary towards their pension every year.
Under the unreformed pension system TfL employees contribute towards their pension and the employer contribution is a massive 31 per cent.
That is more than double the 13 per cent that most other staff get under the Local Government Pensions scheme, which includes police and City Hall employees.
In an attempt to find a solution to TfL’s broken finances, Mr Bailey has written to both the Transport Secretary Grant Shapps and Mr Khan proposing to slash the costly pension giveaways.
In the letter he said Mr Khan’s refusal to bring TfL’s pension system in line with the rest of the public sector has lost £828 million over the last four years.
Mr Bailey wrote: “I think you will both agree that losses like this are no longer acceptable.
“TfL is in serious financial trouble — not due to coronavirus, the costs of which are being covered by the Transport Secretary, but due to four years of mismanagement.
“So as Sadiq Khan decides where to make savings at TfL, I thought I would write to you both and suggest you protect the services that Londoners need by reforming TfL’s pension system.”
A spokesman for Mr Khan told HOAR: “The Government is lying to Shaun Bailey about Transport for London just like they’re lying to Londoners.
“The sole cause of Transport for London’s financial worries is Covid-19.
TfL’s income has plummeted because Londoners have followed the Government rules by staying at home and avoiding travelling.
“The Government is now trying to punish Londoners for doing the right thing by increasing fares above inflation, introducing new taxes, increasing the size of the congestion charge zone and taking away concessions from the youngest and the oldest Londoners.
“Transport for London’s staff have been true heroes throughout this virus – making massive sacrifices in order to ensure other key workers can get to work – tragically 45 London transport workers have lost their lives to the virus to date. Now does not seem like the appropriate time to talk about punishing them by changing their pay and conditions.”
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