Taxpayer faces £41billion a year bill for bloated pensions of public sector workers (The Daily Mail)

Michael Johnson’s report, “A Toxic Tangle”, was featured in The Daily Mail on Monday 4th February.

To view the full article, please visit The Daily Mail

“Every household in Britain faces a bill of £1,600 a year to pay for the bloated pensions of public sector workers, an industry expert has warned.

The future costs to taxpayers could be as high as £41billion a year – considerably higher than previously thought – as a result of new legislation.

At least £9billion of new costs have been identified because of a ‘toxic triangle’ created by Government plans to introduce a universal flat rate pension in 2017, exemptions for the public sector in the Public Sector Pensions Bill, and outdated life expectancy figures.

The figures have been calculated by pensions analyst Michael Johnson, who lays bare the burden in a report for the Centre for Policy Studies today.

Out of the £9billion costs, £3.4billion will come from the loss of a rebate in 2017 that currently exists for public sector employers when they make National Insurance contributions for their staff. Another £4billion will have to be found because of a government guarantee not to tinker with public service pensions for 25 years.”

To view the full article, please visit The Daily Mail

Date Added: Monday 4th February 2013