The general public sector pensions invoice has hit a file £2.6trillion, Treasury figures present – making it greater than your complete dimension of the UK financial system.
The retirement pot for greater than 5 million staff together with medical doctors, civil servants and lecturers had risen by £333 billion to £2.64 trillion by the 2021-2022 monetary yr, the Treasury mentioned.
Pension liabilities for the NHS scheme alone – which has 1.5million members – now stand at greater than £1 trillion.
Former pensions minister Sir Steve Webb described the entire determine as ‘eye-watering’, The Telegraph reported.
Former pensions minister Sir Steve Webb described the entire determine as ‘eye-watering’
The retirement pot for greater than 5 million staff together with medical doctors, civil servants and lecturers had risen by £333 billion to £2.64 trillion by the 2021-2022 monetary yr, the Treasury mentioned. Pictured: Chancellor of the Exchequer Jeremy Hunt
He added: ‘If the financial system is rising extra sluggishly, then the longer term wealth of the nation goes to be smaller than you thought. So it will be extra painful to pay these guarantees.’
One motive for the invoice is that the general public sector has much more gold-plated closing wage pension schemes than non-public corporations.
A Authorities spokesman mentioned: ‘We have now reformed public service pensions, saving £400 billion.
‘They’re an vital a part of remuneration for hard-working public sector staff and the reforms strike the suitable steadiness between rewarding Crown servants and being honest to the taxpayer.’
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