Public sector pension bill soaring by billions

Wed, 23 Apr 2008

The UK Treasury last night admitted that the cost to the taxpayer of servicing public-sector pension schemes is likely to soar by billions this year. The sum, according to calculations, could exceed 1,000 pounds per household. These skyrocketing pensions expenses could result in big tax rises.

Senior Tories called for the government to come clean about pensions rates, and lambasted a ‘lack of transparency’ whilst warning of problems in the future. The Treasury forecast that public sector pensions bills would climb above £26billion next year.

Pensions consultant John Ball was reported in the news as commenting: "One of the attractions of public sector pensions to employees is that they are guaranteed, and this security comes at a price."

However, the Treasury defended their position and made it clear that analysis didn’t take everything into account. They reportedly said: "The Budget confirmed that public sector pensions are fully affordable and sustainable."
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