Lord Hutton has landed a lucrative £1,000-a-day pensions job... after slashing millions of workers’ retirement pots.

The Labour peer and former Pensions Secretary has been appointed chairman of the civil service’s new part-privatised pensions arm.

But unions are furious because he drew up Government reforms which will force public sector employees to work longer, pay more and get less in retirement.

Ministers boast workers have a share in new firm MyCSP – where Lord Hutton will work 20 days a year – because it is a John Lewis-style “mutual” company.

But Mark Serwotka, of the civil service PCS union, said it had been set up against the wishes of many workers who wanted to remain part of Whitehall’s workforce.

He added: “And to rub salt in the wounds, they’ve handed John Hutton a cushy job.

“His huge pay packet is an insult to the millions of workers whose pensions he has helped to cut.”

Brian Strutton, of the GMB union, said: “Hutton delivered a toadying report on cutting public sector pensions.

"Now his £1,000 per day puts him on a higher rate than the Prime Minister.

“The six million public sector workers and their families whose pensions were cut will be sickened to see him profiting from their losses.”

The Cabinet Office denied Lord Hutton was rewarded for his Government work, stressing that ministers played no part in the appointment.

The peer was picked by the new firm’s non-executive directors – who represent workers and the Government – and the chief executive, who transferred from the civil service.

A spokesman added: “They have an obligation to act in the interests of the company.

"That is what they were doing when they made the decision.”