Pension liabilities at South Lakeland District Council will soar by more than £600,000 following the outcome of a national court case.

The unexpected rise follows a recent ruling by the Supreme Court in an age discrimination case brought against the Government.

It ruled that the Government had no right of appeal after losing a case where changes to pensions for judges and firefighters were ‘discriminatory’.

Cllr Andrew Jarvis, the finance portfolio holder for SLDC, said the ruling had financial implications for councils contributing to public sector pensions.

Cllr Jarvis said: “At the end of June, the Government was denied leave of appeal for two court cases concerning the treatment of public service pensions.

“Although these originally related to the pensions of judges and firefighters, there is a similar but smaller impact on local Government pensions.

“It increases our pension charge to the general fund by £608,000 for past pension service dating back to 2012. The cost on the balance sheet will now show an increase in pension liability of £608,000.”

In addition, the council’s pension contributions would also increase annually from April 2020 by an estimated £123,000, he said.

However, this remained a ‘very rough figure,’ and was subject to change, said Cllr Jarvis, the Liberal Democrat for Windermere.

Cllr Ben Berry, the Conservative councillor for Windermere, expressed concern that there were significant ‘unfunded’ liabilities in the Local Government Pension Scheme with the council having to contribute more.

Cllr Jarvis agreed that pensions remained a ‘major cost’ but it was right that it contributed to the ‘long term’ financial security of employees.

Cllr Jarvis said: “The fact is there is an unfunded deficit in the Local Government Pension Scheme and in the end, we as taxpayers will need to pay one way or another. These are very long-term obligations and who knows what’s going to happen over the next, 30, 40 or 50 years,” he said.

“It’s an important topic for us, as employers and for our many employees. It’s a shame that over the last few years employers are moving away (from pensions) and people will have to work longer and will not be as comfortable in their old age.”