John Hutton, who once claimed to be a Labour minister but always seemed more like a Tory, has delivered his report on public sector pensions.
Unsurprisingly for a died in the wool neoliberal, he has got his entire analysis wrong. As the FT reports:
Public service pensions directly affect up to 12 million people in the UK. They are a vital part of our national savings infrastructure. We should celebrate the fact that over 85% of those in the public sector are saving for their retirement in an employer-sponsored pension scheme. This contrasts with only 35% in the private sector. But as I outline in the interim report of the government’s Independent Public Services Commission today, for some time it has been apparent to many of us that we have a problem with the existing pension arrangements in the public sector.
First, the costs of providing these pensions are rising – up by a third in recent years - and these extra costs have fallen almost entirely onto the shoulders of taxpayers. This is not sustainable.
As I have shown in ‚ÄòMaking Pensions Work’ all pensions in the UK are currently effectively paid by the state.
The reality is that this is the only thing that is sustainable.
No wonder public sector unions will, rightfully, be annoyed. This man has no clue what he is talking about.