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Public sector pensions liability hits new heights

Sep 22 2006 by Brian Amble
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Britain's public sector pensions liability has risen to and astonishing £1,025 billion – the equivalent to 80 per cent of gross domestic product and than double the size of the country's national debt.

That's according to a new report by think-tank the Institute of Economic Affairs (IEA), which has calculated the amount for which the UK taxpayer would be liable if private-sector accounting rules were used to calculate its obligations to public-sector workers.

The Times also says that the study "claimed that the Government makes new pension commitments to public sector workers each year worth more than £40 billion. It said that the cost of meeting the public sector pension commitments already made will peak at £90 billion a year in 2045."

The Times | Liability for UK public pensions up to £1,025bn, study says

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