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    Stats Show UK Pensions Bill 'Is Affordable'

    The Government is on thin ice when it makes the claim that public sector pensions are unaffordable, according to Sky's business presenter Jeff Randall.

    Cabinet Office minister Francis Maude has told Sky News that the Government cannot continue to foot the pensions bill.

    "The cost to the taxpayer of public sector pensions has risen by a third in recent years," he said.

    "All of those who say these pensions are affordable need to say which hospitals they'd close down, which doctors, nurses and teachers they'd make redundant in order to pay for continuing subsidies to public sector pensions."

    Treasury figures show public service schemes paid out £32bn in 2008-09.

    However, looking forward, the most recent forecasts from the Office for Budget Responsibility suggest this figure will have risen just slightly to £33.2bn by 2016/16.

    And a chart in the Government-commissioned Hutton report shows public service pension payouts will actually fall as a percentage of GDP over the coming decades.

    "Is this affordable? Clearly it is because we're affording it right now," Randall said.

    "And what about the changes to pensions? Francis Maude told me they would save £3bn a year - but that's less than half of one percent of the Chancellor's total payout."

    He went on: "The Government is on very thin ice here if it's going to go down the affordability route."

    The TUC's general secretary Brendan Barber stressed the issue of the cost to the Government of public sector pensions in his address to striking workers in Exeter.

    "They are not unsustainable or unaffordable. Big changes were accepted only five years ago to reduce the cost," he said.

    "As the National Audit Office, the Public Accounts Committee, and even Lord Hutton in his report have shown the costs - as a share of our national wealth - are actually set to fall over coming decades - not to increase."

     

    7 comments

    • Bugsie  •  11 months ago
      These stupid thick politicians have had years to work out a lot of people are retiring now - don't some of them have degrees in Economics - I forsaw this as a student 40 years ago - what have we been paying them for all these years to do - .

      Foreign Aid - sticking our noses in other countries wars - immigration - child benefits - MPs expenses, second homes, tax free bar in parliament - this is where all the money we have paid in over the years has gone to.

      Perhaps we should look at how much these MPs are costing us - how many staff do they employ which we are also paying for. How many homes does Blair now own - bought through years of living off the tax payer
      • Shaunus of Shaunsire 11 months ago
        MP's are the greatest scroungers this country has ever had. They are a useless bunch of self serving miscreants who would sell their grandmothers false teeth for profit. I'd line the lot of them up against a wall.
      • kean 11 months ago
        No worries about the non-contributory MP`s very generous pension scheme then.
      • Shaunus of Shaunsire 11 months ago
        MP's are the greatest scroungers this country has ever had. They are a useless bunch of self serving miscreants who would sell their grandmothers false teeth for profit. I'd line the lot of them up against a wall.
    • Nick  •  10 months ago
      Thi is just another 'them and us' scenario - they @#$% up everything they deal with and do little work, ending up with huge salaries and huge, non-contributary pensions. You slog it out all of your working life, pay for your pension throughout and they then decide that you will be cheated out of your just dues in retirement and lies about the reasons why it's 'unaffordable' - applies to both political parties equally.
    • DEREK W  •  11 months ago
      what is causing economic trouble is price rises....if they were blocked we coukld live on our pension/wages.....but we are being eaten alive by the cost of living going up,,,,the politicians with their big salaries,perks,expense allowances don't live in the real world.....stop price rises and then we don't need a pay rise....or is that too simplistic...
    • Wasteful Willie  •  11 months ago
      Well,well that's interesting; will the Tory spin waggon grind to a halt? Don't bank on it. Mr Maude might get the sack for incompetance but don't Bank on that either Their whole policy is based on party political dogmatic myths. Its not only the left who live in cloud cuckoo land.
    • red away from henrietta  •  10 months ago
      the TORY way is to increase pensionable age.what is right about a man or a woman working 40-50 years of their life span.it is a digrace. instead of increasing the pension age it should be reduced.hence this creates jobs for the young who through tax pays for pensions .it would also help if these TORY GOONS stopped giving tax payers money away to anyone thats NOT BRITISH
    • john sloop b  •  11 months ago
      Her eis a great idea! get the reall working men/females to work their butts of and give them small pensions and get these suckers to work longer so we can get the best pensions and dont mention to them that they actually pay our wages and taxes!. what do you think???...why hasn't anybody thought of this before?
    • A Yahoo! User  •  11 months ago
      The article is economical with the facts. The reason that the percentage of cost falls is two fold. The treasury figures have been computed on the basis that the number of public service employees will fall and this will allow the economy to grow faster than the growth in the cost of the pensions. If in the future the public sector employment does not continue to drop or even rises again then the cost against gp will also rise. The article is also silent on whether we can afford the present cost.