Call for action on public sector pensions
by Richard Kilner
Story link: Call for action on public sector pensions
Professor Philip Booth, Editorial and Programme Director at the Institute of Economic Affairs, has called for urgent action to be taken regarding public sector pensions.
Professor Booth welcome the recent surprise appointment of former Labour Cabinet minister John Hutton to the new Coalition Government’s pensions commission.
Professor Booth added that whilst the commission itself may not be necessary he was pleased to see the importance being attached to the issue by the Coalition Government, and that the commission would report quickly.
He went on to say that the true liabilities of public sector pensions, in the region of £1.2 trillion, were hidden from the public due to antiquated government accounting conventions, and accused the Office for Budget Responsibility of not being outspoken enough about this matter in last week’s report.
Before the election, which led to a Hung Parliament and the first coalition since 1945, Brewin Dolphin commissioned research showing that 70% of Britons felt the political parties had not done enough to explain their pensions policies.
In the same survey 51% backed the idea of cutting back on the costs of public sector pensions.