Everyone knows how Gordon Brown has virtually bankrupted the private pension system and raided £5 billion a year. But I was surprised to discover the Government has no up to date figures for the unfunded public service pension scheme.
The last calculation was back in March 2005 when the Government said the liability stood at £530 billion. The reason why it has not been updated is because according to Andy Burnham, Chief Secretary to the Treasury, they are “complex calculations”. Is Government no longer making “complex calculations”!
As Mr Burnham makes clear they are awaiting “updated assessments of the discount rate”. By using a higher discount rate in its sums, the Treasury is able to charge state employers, such as the NHS, less for their pension contributions — leaving more money for current improvements to public services but obliging future taxpayers to pick up the tab.
Independent current estimates of liability vary betweenWatson Wyatt’s £960 billion and Neil Record’s £1,025 billion. This is just under double the size of the national debt.
The cost of meeting the public sector pension commitments already made could cost every family in Britain £33,000 according to, Shadow Spokesman Philip Hammond. Current commitments will peak at £90 billion a year in 2045 which is larger than the current education budget of £80 billion. This Government is irresponsibly mortgaging our children’s future.
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