UNIONS have hit back at Whitehall plans to cut public-sector pensions by offering workers wage increases in exchange for lower retirement payments.

Calling it a “false trade off driven by austerity,” the Fire Brigades Union slammed the suggestion, which could lower pensions for firefighters, nurses and teachers.

Public-sector union Unison also warned it could result in a “race to the bottom” with private-sector retirement benefits.

Catherine Little, permanent secretary to the Cabinet Office, has been leading talks on the subject before officially proposing the reforms to ministers, according to the Telegraph.

The FDA union, which represents civil servants and public-sector workers, confirmed it was aware that the Cabinet Office was exploring changes to the retirement system.

Ms Little, who is also the chief operating officer to the Civil Service, announced a review of “the balance between pay and pensions” in December.

She had previously said the Civil Service was facing a “whole set of issues around pay.”

Unison head of policy Sampson Low told the Star: “Low pay and recruitment problems in the public sector won’t be solved by offering to make people poorer in their retirement.

“Getting involved in a race to the bottom trying to match inferior pensions in parts of the private sector benefits nobody.”

FBU general secretary Steve Wright said: “It would be outrageous to raid our pensions again and the FBU will fiercely resist any attempt to attack the pensions of firefighters and other public-sector workers.

“Workers will not accept a false trade-off driven by austerity.

“Since 2010, public-sector pay and pensions have been hammered by austerity.

“Firefighters are already being forced to work to 60, for a downgraded pension — and on around 12 per cent less pay in real terms.

“The Labour government must urgently introduce a wealth tax to properly fund public services and provide a substantial pay increase for all workers.

“That is the only way to drive up growth and living standards.”

A government spokesman said: “We are focused on supporting the Civil Service with the necessary tools it needs to deliver change for working people.”