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Minister: Strikes won't stop UK reform

London - Public sector workers will not stop the UK government from reforming their pensions by going on strike, Treasury Minister Danny Alexander is expected to say on Friday, in a speech likely to further inflame union anger.

The coalition government is making changes to public sector pensions as part of efforts to reduce Britain's debt burden and to adjust to a population that is living longer.

About 750 000 workers - including teachers and job centre staff - have vowed to stage coordinated action later this month, in what would be Britain's worst labour stoppages for decades as anger over the coalition government's spending cuts grows.

"It may be that those who oppose this change think that they can force the government to change its mind," Alexander will say in a speech in London, according to extracts seen by Reuters.

"This head-in-the sand approach is a colossal mistake. This government will reform public service pensions, and this is the time to shape that change - not try to block it."

Government spending is bearing the brunt of the austerity plan to eliminate a record budget deficit, with hundreds of thousands of jobs in the public sector set for the axe, pay packets frozen for two years and pensions facing reform.

Alexander will also confirm that the government is to protect low-paid workers from an average pension contribution increase of 3.2%.

About 15% of staff - earning less than £15 000 - will not have to pay anything extra into their pension pots, while those earning less than £18 000 a year will face a capped increase of 1.5%.

The government will phase in the hikes from April next year through to 2014, saving £2.8bn.

Alexander is also expected to say accrued pension rights earned before the reforms will be protected and that public sector retirement ages will be linked to the state pension age, excluding the police, armed forces and fire service.

"There is an indisputable case for reforming public sector pensions to ensure that they are affordable and sustainable," Alexander is expected to say.

"People are living much longer... This advance comes at a price. It is unjustifiable to ask the taxpayer to work longer and pay more so that public sector workers can retire earlier and receive more themselves." 

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