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Budget 2016: Public Sector Employer Pension Contributions To Rise
Experts Question Whether Move Will Reduce Spending On Public Services
George Osborne has said he wants to keep public pensions sustainable and has announced that the changes in the last parliament saved £400bn in the long-run.
In his Budget speech today he said public sector employer pension contributions will rise.
Experts at law firm Irwin Mitchell said the annulment was good news for future generations but questioned if the move will reduce spending on public services.
Partner and pensions specialist Penny Cogher said:
"Increasing the public sector employer contributions is to be welcomed as it is at least some recognition by the Government of the real cost of providing gold plated public pensions.
“However the contributions will need to increase considerably before these public sector pension arrangements cease to be a burden on our children and grandchildren.” Penny Cogher - Partner
Fellow Partner and pensions expert Martin Jenkins added:
“Public sector employers have to pay more for their staff pensions. Is this not Peter robbing Paul? If public sector bodies face higher internal costs they will have less money to provide public services.” Martin Jenkins - Partner