'Good Chance' Of Union Deal Before New Year

There is a "good chance" of a pensions deal with the unions before the end of the year, a Minister has said as thousands of workers return to work after taking part in strikes.

Talks between government ministers and union leaders will resume today in a bid to prevent further industrial action.

Danny Alexander, Chief Secretary to the Treasury and part of the negotiating team, said both sides should carry on the process with a "very positive and constructive mood".

If they do so, "I genuinely believe it is possible... for us to reach an agreement before the end of the year," he said.

"That's what we want, I believe that's what most of the trade unions want too and its certainly what the people of this country want."

Asked if there would be "peace in our time before Christmas", Mr Alexander told Sky News: "I think there's a good chance of that, I'm not going to give a particular percentage rating to it."

Deputy Prime Minister Nick Clegg said it was time to "sort this out once and for all".

He said the Government was "absolutely committed" to ensuring public sector workers get good pensions but said unions must accept workers are living longer.

Mass industrial action is not good for the country, he added.

The unions hailed Wednesday's industrial action, which brought disruption to schools, hospitals and other key services across the UK, as the biggest since the 1979 Winter of Discontent.

Officials from 30 unions involved in the strike reported huge support, with up to 90% of some organisations taking action, often for the first time in their lives.

More than 1,000 rallies were held across the UK, including one in central London attended by tens of thousands of workers and their families.

But David Cameron said the "irresponsible and damaging" walkout had been a "damp squib" and was far from as universally supported as claimed.

Unison leader Dave Prentis hit back at the Prime Minister's comments saying: "I wouldn't call two million people taking strike action a damp squib.

"The thousands of picket lines, demonstrations, rallies and events are not a figment of our imagination.

"These people are angry public servants who the Government has driven to the end of their tether."

Cabinet Office minister Francis Maude said a formal discussion with teaching unions would take place later and meetings with health union leaders would be held on Friday.

He branded claims the Government is not negotiating with unions as "simply not true".

The strike closed more than three-quarters of schools in England, as well as courts, museums, libraries and job centres, disrupted transport, hospitals and Government departments and led to around 15% of driving tests being cancelled.

Police were called in to help the London Ambulance Service attend emergencies after 42% of staff walked out.

The NHS London strategic health authority said the service received 30% more 999 calls than normal.

The Metropolitan Police said that while the ambulance service dealt with "critical incidents" where lives were at risk, police provided medical support and transported medical staff where required.

The Local Government Association said around a third of council employees in England and Wales were not in work - around 670,000 out of a total of 2.1 million.

A "handful" of staff from 10 Downing Street went on strike and the school attended by Mr Cameron's son, Elwen, was closed.

Warnings of huge delays at Heathrow Airport failed to materialise. Passengers said border controls were "better than usual".

Union officials accused the Government of "ramping up" possible airport disruption and claimed that under-trained staff had been drafted in to cover striking immigration and passport workers.

Meanwhile, the Department of Health ordered NHS trusts in England to not release figures regarding staff on strike or the number of cancelled operations and appointments.

The move sparked accusations from unions that the Government was trying to hide the disruption.

As the walkout took place the Institute for Fiscal Studies delivered its verdict on Chancellor George Osborne's latest raft of measures, designed to boost the economy.

It concluded real household disposable incomes will fall during this Parliament by the biggest amount since records began in the mid-1950s.

Household disposable incomes - the key measure of living standards in the economy - will be no higher in 2015 than in 2002, the IFS said.

The majority of the pain from the measures contained in the Chancellor's Autumn Statement will be felt by poorer households, it added.