
Proposals: Chancellor George Osborne will publish plans that could see public sector workers transferred to less generous pensions
Payments due to hundreds of thousands of nurses, doctors and bin collectors could be cut to less than half under proposals being considered by the Treasury.
The Government wants providers other than the State to take over the running of some services as part of David Cameron's 'Big Society' plan.
But ministers fear the generous final salary schemes paid out to public sector workers would deter all but the biggest firms from doing so.
Last night unions said the proposal was 'extremely provocative' and could lead to a fresh round of strikes if enacted.
Public sector workers have their pensions protected, even if another provider takes over the service, under 'fair deal' rules agreed by Labour in the late 1990s.