80,000 civil servants strike over pay

More than 80,000 civil servants went on strike today, their union claimed - as a leaked report revealed they could face huge job cuts.

Leaders of the Public and Commercial Services union claimed up to 90 per cent success for the first stage of a 48-hour pay strike as offices nationwide dealing with jobseekers, pensions and Child Support Agency cases were disrupted.

However, the Department for Work and Pensions disputed the union's claims, saying that "nearly 90 per cent of Jobcentre Plus offices remain open and are providing a service to the public.

"Early reports suggest that only 146 offices have closed as a result of action." It described the strike as "indefensible". The workers have overwhelmingly rejected a 2.6 per cent pay increase. The industrial action - with a warning of more to come - is the biggest unrest in the civil service for more than a decade.

The union said most of its 10,000 members in London had obeyed the strike call. A spokesman said the action in east London was "solid" with picket lines at most offices. "Across the country we have between 80 and 90 per cent support, with this particularly heavy in London."

The spokesman said thousands of offices nationwide dealing with jobseekers, pensions and child support agency cases were being disrupted.

Driving examiners will walk out tomorrow in a separate row over pay, and thousands of other civil servants could take industrial action in the next few weeks.

A Department for Work and Pensions spokeswoman said special arrangements were in place which would ensure that all those entitled to benefits received them.

As the strike began, a leaked report revealed how widescale reforms of the civil service could cut at least 80,000 jobs and make savings of £15billion a year.

A government efficiency review proposes large cuts in bureaucracy while resources are targeted at the front line - particularly education and the NHS.

Sir Peter Gershon's leaked report proposes a 16 per cent reduction in the "running costs" of central government, largely by a transformation in the system of regulation, inspection and funding of both the public and private sectors.

Local authorities would join forces to "buy" everything from street cleaning to housing maintenance and care providers.

Private sector companies would enjoy lower compliance costs, but they would face stiffer criminal penalties and higher fines for breaching health and safety regulations. Sir Peter proposes a new tier of frontline posts, including higherlevel teaching assistants, "case managers" to lift the burden of paperwork from police and health "para-professionals" to help nurses.

Sir Peter's proposals come as Chancellor Gordon Brown faces a £13billion gap between tax receipts and government spending. Sir Peter, head of the office of government commerce, has already put his headline plans to Mr Brown and Tony Blair. He is working with Whitehall departments on detailed proposals.

Mark Serwotka, general secretary of the PCS union, described the report as a "kick in the teeth for civil servants".