Public sector pensions liability hits new heights

Sep 22 2006 by Brian Amble Print This Article

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