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Public pensions: 'Pay more, work longer'

Millions of public sector workers should pay higher pension contributions and work for longer, according to a commission headed by the former Labour Work and Pensions Secretary, Lord Hutton.

In his interim report, he also said the current final salary scheme is 'fundamentally unfair'.

The final report will come out ahead of next year's Budget but unions say the proposed changes would amount to 'a savage pay cut'.

Hugh Pym reports.