MOVING 250 jobs to India, including some from the North-East, will cost the taxpayer £25m, a union has claimed.

The Public and Commercial Services Union (PCS) is fighting the scheme, by German electronics company Siemens, which has the Government contract to run The National Savings Agency.

Siemens Business Services wants to move 250 jobs from its centres in Durham City, Blackpool and Glasgow to save on labour costs.

Although the company said there would be no job losses and that staff would be redeployed, the union said 400 agency workers not directly employed by the company would go, including about 50 in Durham.

The company has said the move is unrelated to its plan to export jobs to India.

The PCS, which fears the move could be " the thin end of the wedge" , estimates that over the lifetime of Siemens\rquote contract, the plans will cost the taxpayer £25m in benefit payments, lost tax and national insurance.

PCS group president Danny Williamson said: " If the Government don't take a broader, long-term view and ensure the jobs remain in the UK, then they are in danger of squandering taxpayers money so that a private company can make an extra £50m on top of what they are already paid."

The union, backed by Durham City Labour MP Gerry Steinberg, is pressing the Government to take action because it is in talks with Siemens over the extension of its contract.