The government has come to a tentative agreement on pension reforms with the majority of public sector unions, Treasury Minister Danny Alexander announced on Tuesday.
Union leaders will consider the terms of the offer and are expected to give a reply in the New Year.
The government has said it is unable to maintain state sector pensions at their current level and has made the proposals in a bid to minimise the payouts.
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Speaking in Parliament, Alexander told ministers: "I am pleased to report to the House that heads of agreement have now been established with most unions in the local government, health, civil service and teachers schemes."
"It will now of course be for union executives and memberships to decide their response."
He also added that of the 28 public sector unions, 26 had agreed, at least in principle.
NR
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