Peter Wilby hits the nail on the head with regard to public sector pension reform in the New Stateman today:
The report on public-sector pensions from the former Labour minister John (now Lord) Hutton must be understood as part of a wider agenda.
First, after private-sector recklessness, greed and incompetence plunged us into financial crisis and recession, Tory politicians and right-wing newspapers aimed to deflect popular anger on to public-sector workers. They eagerly pointed out that, while stock-market falls and near-zero interest rates had slashed the value of most private-sector pensions, teachers, nurses, firefighters and local government bureaucrats continued to enjoy the prospect of a "gold-plated" retirement, on up to half their final salaries, with ample protection from inflation.
Government measures, notably changing the inflation index used in calculating payments, have already cut their value by around 25 per cent. But ministers reckon there is mileage in continuing the jihad.
Second, pension obligations are the biggest barrier to more privatising and outsourcing of public-sector services. Public services, we are repeatedly told, are run for the employees, not the public. They are being "reformed" so that they can be run for the benefit of capital.
Precisely so.As I have often argued.
And now we must offer the security in old age of many up to the altar of the greed of a few.
It's all part of the enclosure of public goods for the private benefit of a few that underpins all this government is doing.
And which will require a radical government - a government willing to tear up contracts, to nationalise where need be, and to impose so heavily on those private sector contractors that remain after that that they run from their obligations in fear - when we get rid of the Tories for a generation at the next general election.
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“when we get rid of the Tories for a generation at the next general election.”
And replace them with the other Tories with a different Pantone number.
We’re get nowhere until we have a genuinely Progressive Party that understands what it can do with the Monetary Sovereignty of the United Kingdom.
At that point we might have a fighting chance of putting the ‘Great’ back into Britain.
“And now we must offer the security in old age of many up to the altar of the greed of a few.”
Really???? As a private sector worker who had absolutely nothing to do with the financial crash, it looks like I am one of many paying through my tax for the additional security in old age for the few.
When the cost of funded/unfunded public sector pension liabilities per capita exceeds the amount that private sector taxpayers can afford in their own pension contributions – we have a real problem.
@Neil Wilson
I agree – New labour again would be a repeat of the disaster
Let them have Hutton
He’s so far to the right it’s absurd he can be called a Labour politician
@James
So we must all dumb down to your level?
Why not demand a fair return from your employer?
Why not join a union?
You go on about the tax gap, why shouldnt we fix the 10 billion annual public sector pension funding gap.
Don’t think defending public pensions will be that popular.
Everyone knows that the public sector unions are self interested for their members.
Be prepared for great anger and hatred of the unions. Let’s talk about the pension gap. That is a genuine and indefensible gap.
Changes must be made.
@Matthew
Wrong
see later blog
The problem is private sector pensions
not state ones
Your logic reminds me of 1984, the book not the year. Half the reason libraries are shutting is the LAs are finding it hard to finance the unaffordable pensions. You talk about fat cats of the bankers, now we shall no doubt hear of the fat cats of the public sector.the good times are over for all. they will only come back if people are realistic and not selfish.
I won’t post again here as I suspect they are not of interest but I shall still follow this blog as I find it strangely compelling.
@Matthew, perhaps you find the blog compelling because, even if you aren’t capable of immediately recognising it, Richard is providing an alternative to the right wing idiocy that’s been foisted on us, and still is now, by succesive governments and big business.
Maybe the rational part of your mind actually likes it?