Government launches public pension review

The government has commenced a review into the method in which it calculates public pension payments, amid concerns that Britain’s liabilities could stand at over £1 trillion.

According to official statistics, the UK owes around £800 billion in state-funded pensions, but some experts claim the figure appears to vary considerably depending on which methodology is implemented.

Public sector workers such as teachers, civil servants and health service staff could see their contribution rates raised by as much as a combined £20 billion annually if the Treasury chooses to introduce some of the more extensive changes proposed.

“There is no case for a special discount rate for public sector pensions, as there should be a common way across government for measuring future costs in today’s money,” said TUC general secretary Brendan Barber.

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Earlier this week, a survey conducted by trade body R3 revealed that around four million Brits fear being made redundant over the next few months.

Posted by Cameron Thomson